question $6$ At the time they decided to liquidate their partnership, Whitehead, Ellis and Riley had capital balances of $$65,000,$ $$45,000$ and $$80,000$ respectively. Liabilities were $$50,000$ and the balance sheet showed a note receivable from Ellis in the amount of $$30,000.$ The partners share income in a $5$:$3$:$2$ ratio.

Required

Prepare a schedule showing how cash is to be distributed as it becomes available during the liquidation process.

Remember to use negative signs with answers that reduce the capital balances.

Whitehead Ellis Riley

Capital balances per books Answer $1$

Answer $2$

Answer $3$

Deduct loan receivable Answer $4$

Answer $5$

Answer $6$

Pre$-$liquidation balances Answer $7$

Answer $8$

Answer $9$

Standardized capital balances Answer $10$

Answer $11$

Answer $12$

$($a$)$ Equalize Whitehead and Riley Answer $13$

Answer $14$

Answer $15$

Answer $16$

Answer $17$

Answer $18$

$($b$)$ Equalize Whitehead, Ellis & Riley Answer $19$

Answer $20$

Answer $21$

Totals Answer $22$

Answer $23$

Answer $24$

Convert equalization adjustments $-($a$)$ Answer $25$

Answer $26$

Answer $27$

Convert equalization adjustments $-($b$)$ Answer $28$

Answer $29$

Answer $30$

Cash Distribution Plan:

First Answer $31$

Answer $32$

Next Answer $33$

Answer $34$

Next Answer $35$

Answer $36$

Cash over Answer $37$

Answer $38$