The adjusted trial balance of the Jee, Moore, and Olsen partnership at December 31, 2011, is as follows:
Cash ............ $ 50,000
Accounts receivable—net .... 100,000
Nonmonetary assets ....... 800,000
Expenses .......... 400,000
Total debits..................................... $1,350,000
Accounts payable ...... $ 80,000
Jee capital ......... 250,000
Moore capital ............ 450,000
Olsen capital ......... 370,000
Revenue........... 200,000
Total credits......... $1,350,000
ADDITIONAL INFORMATION
1. Partnership profits are divided 20%, 40%, and 40% to Jee, Moore, and Olsen, respectively, after salary allowances of $25,000 each to Jee and Moore for time devoted to the business.
2. Due to the disastrous results of 2011, the partners agreed to liquidate the business as soon as possible after January 1, 2012, and to distribute available cash on a weekly basis.
3. During the first week in January, $85,500 was collected on the accounts receivable, and cash was distributed on January 8, 2012.
REQUIRED
1. Prepare the journal entries to close the partnership books at December 31, 2011.
2. Develop a cash distribution plan for the partnership as of January 1, 2012.
3. Prepare a cash distribution schedule for the January 8, 2012, distribution of available cash.