After all noncash assets have been converted into cash in the liquidation of the Adam and Kay Partnership, the ledger contains the following account balances:

Available cash should be distributed with $32,000 going to accounts payable and then

a. $15,000 to the loan payable to Adam.

b. $7,500 each to Adam and Kay.

c. $8,000 to Adam and $7,000 to Kay.

d. $7,000 to Adam and $8,000 to Kay.

Transcribed Image Text:

Cash Accounts Payable Loan Payable to Adam Adam, Capital Kay, Capital Debit Credit $47,000 $32,000 15,000 7,000 7.000