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Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnerships

Drawdy, Langston, and Pearl operate a local accounting firm as a partnership. After working together for several years, they have decided to liquidate the partnerships property. The partners have prepared the following balance sheet:

Cash $ 35,000 Liabilities $ 45,500
Drawdy, loan 20,000 Langston, loan 25,000
Noncash assets 180,000 Drawdy, capital 80,000
Langston, capital 65,000
Pearl, capital 19,500
Total assets $ 235,000 Total liabilities and capital $ 235,000

The firm sells the noncash assets for $135,000; it will use $21,000 of this amount to pay liquidation expenses. All three of these partners are personally insolvent. Assume that the profits and losses are split 2:4:4 to Drawdy, Langston, and Pearl, respectively.

Indicate the cash distribution to be made to partners at the end of the liquidation process. Unless otherwise stated, assume that all solvent partners will reimburse the partnership for their deficit capital balances. (Do not round intermediate calculations. Round the final answers to nearest dollar amounts.)

Drawdy, Loan and Capital Langston, Loan and Capital Pearl, Capital
Beginning balances
Loss on disposal
Liquidation expenses
Capital balances $0 $0 $0
Allocation of Pearl's deficit balance
Final distribution $0 $0 $0

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