The balance sheet of the Maude, Ned, and Oscar partnership on November 1, 2014 (before commencement of
Question:
The balance sheet of the Maude, Ned, and Oscar partnership on November 1, 2014 (before commencement of partnership liquidation) was as follows:
Cash $ 12,000
Georgia, capital (40%) $ 36,000
Holly, capital (30%) 6,000
Festus, capital (50%) 31,000
Total assets $ 90,000
Total liab./equity $ 90,000
Cash $ 70,000
Accounts payable $ 42,000
Inventory 60,000
Notes payable 68,000
Loan to Maude 10,000
Maude, capital (20%) 30,000
Loan to Oscar 18,000
Ned, capital (20%) 32,000
Plant assets-net 80,000
Oscar, capital (60%) 66,000
Total assets $ 238,000
Total liab./equity $ 238,000
Liquidation events in November were as follows: -
All the inventory was sold for $10,000 above book value; -
Plant assets with a book value of $60,000 were sold for $34,000.
Required;
Determine how the available cash on November 31, 2014 should be distributed
Expert Answer:
