The partnership of Denver, Elsie, Fannie, and George is being liquidated over the first few months of 2011. The trial balance at January 1, 2011, is as follows:

1. The partners agree to retain $20,000 cash on hand for contingencies and to distribute the rest of the available cash at the end of each month.2. In January, half of the receivables were collected. Inventory that cost $75,000 was liquidated for $45,000. The land was sold for$250,000.

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Debits Credits $200,000 Cash Accounts receivable 56,000 Inventory Equipment (net) Land 142.000 300,000 150,000 20,000 Loan to Denver Accounts payable Denver capital (20%) Elsie capital (10%) Fannie capital (50%) George capital (20%) $400,000 170,000 80,000 140,000 78,000 $868,000 $868,000