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The balance sheet of the Addy, Bess, and Clara partnership on January 1, 2014 (the date of partnership dissolution) was as follows: Cash $ 4,000
The balance sheet of the Addy, Bess, and Clara partnership on January 1, 2014 (the date of partnership dissolution) was as follows:
Cash | $ 4,000 | Liabilities | $ 8,000 | |
Other assets | 26,000 | Loan from Addy | 1,000 | |
Loan to Clara | 2,000 | Addy, capital (20%) | 2,000 | |
Bess, capital (40%) | 9,000 | |||
Clara, capital (40%) | 12,000 | |||
Total assets | $32,000 | Total liab./equity | $32,000 |
In January, other assets with a book value of $16,000 were sold for $10,000 in cash.
Required:
Determine how the available cash on January 31, 2014 will be distributed. (Use a safe payments schedule.) _________________________________________________________________________________________
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