The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2014. The balance sheet at that date is shown below:

In January, $34,000 of the accounts receivable was collected, and an additional $6,000 was determined to be uncollectible. The remaining receivables are still expected to be collected.

Required:

Determine how the available cash on January 31, 2014 will be distributed. (Use a safe payments schedule.)

Transcribed Image Text:

Cash Other assets Loan to Clara Total assets $ 12,000 70,000 8,000 $ 90,000 Liabilities Loan from Dollar Dollar, capital (20%) Earl, capital (30%) Festus, capital (50%) Total liab./ equity $ 36,000 1,000 6,000 16,000 31,000 $ 90,000 Cash Other assets Loan to Clara Total assets $ 12,000 70,000 8,000 $ 90,000 Liabilities Loan from Dollar Dollar, capital (20%) Earl, capital (30%) Festus, capital (50%) Total liab./ equity $ 36,000 1,000 6,000 16,000 31,000 $ 90,000

Answer rating: 100% (QA)

Dolla Earl and Festus Partnership Liquidation Schedule Cash Asset... View the full answer