A partnership has gone through liquidation and now reports the following account balances: Cash $16,000 Loan from
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A partnership has gone through liquidation and now reports the following account balances:
Cash | $16,000 |
Loan from Jones | 3,000 |
Wayman, capital | (2,000) (deficit) |
Jones, capital | (5,000) (deficit) |
Fuller, capital | 13,000 |
Rogers, capital | 7,000 |
Profits and losses are allocated on the following basis: Wayman, 30 percent; Jones, 20 percent; Fuller, 30 percent; and Rogers, 20 percent Which of the following events should occur now?
a. Jones should receive $3,000 cash because of the loan balance
b. Fuller should receive $11,800 and Rogers $4,200
c. Fuller should receive $10,600 and Rogers $5,400
d. Jones should receive $3,000, Fuller $8,800, and Rogers $4,200
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