1. The Folly and Frill company is in the process of liquidation.

On January 1, 2011, the general ledger shows the account balances as follows:

Cash $10,000

Accounts payable 15,000

Accounts receivable 25,000

Folly Capital 40,000

Lumber inventory 40,000

Frill Capital 20,000

-On January 10, 2011, lumber inventory sells for $25,000

-During January, only $21,000 of accounts receivable was collected. No more charges are expected.

-Profits are shared 60 percent with Folly and 40 percent with Frill.

Prepare a worksheet that shows the details of the liquidation process as of February 1, 2011. Determine the final balance of each partner's capital accounts.