The Catt, Dogg, and Eustus partnership was established by the partners early February 2008. The business was
Question:
The Catt, Dogg, and Eustus partnership was established by the partners early February 2008. The business was highly successful up till the year 2017. However, starting 2018, a downturn started due to economic and marketing factors causing sales to drop drastically and hence, the result of operations for the year 2018 was a $25,000 loss. On August 1, 2019, the partnership's balance sheet showed the following information before starting with the business liquidation:
Liquidation events in august were as follows: -
Receivables recorded at $120,000 were collected at $110,000; - I
nventory costing of $80,000 was sold at a loss of $20,000; -
Plant assets were sold for $140,000 cash, resulting in a 40,000 gain.
Required:
Determine how the available cash on August 31, 2019 should be distributed.
Principles of Cost Accounting
ISBN: 978-1305087408
17th edition
Authors: Edward J. Vanderbeck, Maria Mitchell