Prior to the distribution of cash to the partners, the accounts in the Sheridan Company...
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Accounting
Prior to the distribution of cash to the partners, the accounts in the Sheridan Company are Cash $42,800; Vogel, Capital (Cr.) $24,800; Utech, Capital (Cr.) $22,800; and Pena, Capital (Dr.) $4,800. The income ratios are 5:3:2, respectively. Sheridan Company decides to liquidate the company.
Prepare the entry to record (1) the absorption of Penas capital deficiency by the other partners and (2) the distribution of cash to the partners with credit balances.
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