Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation: cash- 100,000 non cash assets- 210,000 total-310,000 liabilities-40,000 keaton capital-90,000

The Keaton, Lewis, and Meador partnership had the following balance sheet just before entering liquidation:

cash- 100,000

non cash assets- 210,000

total-310,000

liabilities-40,000

keaton capital-90,000

lewis-60,000

meador-120,000

total-310,000

Keaton, Lewis, and Meador share profits and losses in a ratio of 2:4:4. The partnership feels confident it will be able to eventually sell the noncash assets and wants to distribute some cash before paying liabilities. How much would each partner receive of a total $60,000 distribution of cash? answer should be KEATON(40,000) LEWIS 0 , MEADOR-20,000

Please explain and show your work.thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions