Parsons Company wishes to liquidate the firm by distributing the companys cash to the three partners Prior to the distribution of cash, the companys balances are Cash $73,000 Oakley, Capital (Cr ) $47,000 Quaney, Capital (Dr ) $14,000 and Ellis, Capital (Cr ) $40,000 The income ratios of the three ...

Parsons Company wishes to liquidate the firm by distributing the companys cash to the three partners. Prior

Question:

Parsons Company wishes to liquidate the firm by distributing the company’s cash to the three partners. Prior to the of cash, the company’s balances are: Cash $73,000; Oakley, Capital (Cr.) $47,000; Quaney, Capital (Dr.) $14,000; and Ellis, Capital (Cr.) $40,000. The income ratios of the three partners are 3:3:4, respectively. Prepare the entry to record the absorption of Quaney’s capital deficiency by the other partners and the of cash to the partners with credit balances.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...