On June 30, Year 1, the partners of Harvey and Company agreed to the liquidation of their partnership. On that date the liability of the partnership to individual partners and the partners capital balances and profit and loss ratios were as follows: P & L

Harvey loan $21,600

Ronald loan 36,000

Harvey capital 72,000 .4

Ronald capital 77,400 .3

Jones capital 64,800 .2

Kirk capital 36,000 .1

Required: (a) Prepare a calculation as at June 30, Year 1, that will clearly indicate how cash will be distributed to partners as it becomes available for distribution.

(b) In July and August, cash was distributed correctly to partners. This resulted in Kirk receiving payments totalling $7,500. Calculate how much cash has been distributed as at August 31 by the partnership to each of Harvey and Ronald as reductions of their respective loan balances.