Jonas, Teese, and Moyer are liquidating their partnership. Before selling the noncash assets and paying the liabilities,

Question:

Jonas, Teese, and Moyer are liquidating their partnership. Before selling the noncash assets and paying the liabilities, the Capital balances are Jonas, $57,500; Teese, $34,500; and Moyer, $23,000. The partnership agreement divides profits and losses equally.

Required

1. After selling the noncash assets and paying the liabilities, suppose the partnership has cash of $115,000. How much cash will each partner receive in final liquidation?

2. After selling the noncash assets and paying the liabilities, suppose the partnership has cash of $103,000. How much cash will each partner receive in final liquidation?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...