Question
2) The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2014. The balance sheet at that date is shown below: Cash $
2) The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2014. The balance sheet at that date is shown below: Cash $ 12,000 Liabilities $ 36,000 Other assets 70,000 Loan from Dolla 1,000 Loan to Festus 8,000 Dolla, capital (20%) 6,000 Earl, capital (30%) 16,000 Festus, capital (50%) 31,000 Total assets $ 90,000 Total liab./equity $ 90,000 In January, $34,000 of the accounts receivable was collected, and an additional $6,000 was determined to be uncollectible. The remaining receivables are still expected to be collected. Required: Determine how the available cash on January 31, 2014 will be distributed. (Use a safe payments schedule.)
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