Safe Payment Calculation$$Cash Distribution Plan

At the time they decided to liquidate their partnership, Whitehead, Ellis and Riley had capital balances of $$75,000,$ $$60,000$ and $$100,000,$ respectively. Liabilities were $$48,000$ and the balance sheet showed a note receivable from Ellis in the amount of $$40,000.$ The partners share income in a $5$:$3$:$2$ ratio.

Prepare a schedule showing how cash is to be distributed as it becomes available during the liquidation process.

Remember to use negative signs with answers that reduce the capital balances.

WhiteheadEllisRileyCapital balances per booksAnswer $1$

Answer $2$

Answer $3$

Deduct loan receivableAnswer $4$

Answer $5$

Answer $6$

Pre$-$liquidation balancesAnswer $7$

Answer $8$

Answer $9$

Standardized capital balancesAnswer $10$

Answer $11$

Answer $12$

$($a$)$ Equalize Whitehead and RileyAnswer $13$

Answer $14$

Answer $15$

Answer $16$

Answer $17$

Answer $18$

$($b$)$ Equalize Whitehead, Ellis & RileyAnswer $19$

Answer $20$

Answer $21$

Answer $22$

Answer $23$

Answer $24$

Convert equalization adjustments $-($a$)$Answer $25$

Answer $26$

Answer $27$

Convert equalization adjustments $-($b$)$Answer $28$

Answer $29$

Answer $30$

$$

Cash Distribution Plan:FirstAnswer $31$

Answer $32$to creditorsto Rileyto Whitehead and Riley in a $5$:$2$ ratioto Whitehead, Ellis and Riley in a $5$:$3$:$2$ ratio

NextAnswer $33$

Answer $34$to creditorsto Rileyto Whitehead and Riley in a $5$:$2$ ratioto Whitehead, Ellis and Riley in a $5$:$3$:$2$ ratio

NextAnswer $35$

Answer $36$to creditorsto Rileyto Whitehead and Riley in a $5$:$2$ ratioto Whitehead, Ellis and Riley in a $5$:$3$:$2$ ratio

Cash overAnswer $37$

Answer $38$to creditorsto Rileyto Whitehead and Riley in a $5$:$2$ ratioto Whitehead, Ellis and Riley in a $5$:$3$:$2$ ratio

Partners Rane, Snow, and Hale share profits and losses in the ratio of $5$:$3$:$2,$ respectively. The partners vote to dissolve the partnership when its assets, liabilities, and capital are as follows:

Cash$$45,000$Liabilities$$140,000$Other assets$750,000$Capital$$Rane$210,000$Capital$$Snow$275,000$Capital$$Hale$170,000$Total assets$$795,000$Total liabilities and capital$$795,000$

The partnership will be liquidated over an extended period of time. As cash becomes available, it will be distributed to the partners. The first sale of noncash assets having a book value of $$200,000$ realizes $$125,000.$

Required$$

Use the safe payment approach to determine the amount of cash to be distributed to each partner after this sale.

Cash DistributionRaneAnswer $1$

SnowAnswer $2$

HaleAnswer $3$