The partnership of Flo and Fay is in the process of liquidation. On January 1, 2016, the ledger shows account balances as follows:

On January 10, 2016, the lumber inventory is sold for $40,000, and during January, accounts receivable of $41,000 is collected. No further collections on the receivables are expected. Profits are shared 60 percent to Flo and 40 percent to Fay.
REQUIRED:
Prepare a schedule showing how the cash available on February 1, 2016, should be distributed.

Transcribed Image Text:

Cash Accounts receivable Lumber in $10,000 45,000 50,000 Accounts payable Flo capital Fay capital $25,000 45,000 35,000 ventorv