Question
Please help me with this question. The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 20X9: Debit Credit Cash
Please help me with this question.
The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 20X9:
Debit | Credit | |
---|---|---|
Cash | $ 20,000 | |
Accounts Receivable (net) | 30,000 | |
Inventory | 35,000 | |
Plant and Equipment (net) | 215,000 | |
Accounts Payable | $ 40,000 | |
Rachel, Capital | 120,000 | |
Adams, Capital | 90,000 | |
Nixon, Capital | 50,000 | |
Total | $ 300,000 | $ 300,000 |
The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of $180,000 for the accounts receivable, inventory, and plant and equipment as of September 30. The $180,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.
Required:
Prepare a cash distribution plan as of September 30, 20X9, showing how much cash each partner will receive if the offer to sell the assets is accepted.
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