Several years ago, Ann Dennis, Jill Edwards, Lee Lacy, and SarahIngram formed a partnership to operate the Deli Sisters Cafe.Rerouting of bus lines caused declines in patronage to the extentthat the partners have agreed to dissolve the partnership andliquidate the assets. The November 2, 2020, balance sheet of theDeli Sisters Cafe and other data appear below. Partnership incomeand losses are shared in a 2:3:1:4 ratio.
DELI SISTERS CAFÉ
Balance Sheet
November 2, 2020 |
|---|
| Cash | $25,000 | | Liabilities | $60,700 |
| Supplies | 20,000 | | Loan-Ingram | 15,000 |
| Equipment | 175,000 | | Capital-Dennis | 62,000 |
| Fixtures | 50,000 | | Capital-Edwards | 54,000 |
| | | Capital-Lacy | 22,000 |
| | | Capital-Ingram | 56,300 |
|
| Total assets | $270,000 | | Total liabilities and capital | $270,000 |
Additonal information:
During November, sold half of the fixtures for $18,000. Soldequipment with a book value of $30,000 for $21,000.
During December, paid all outside creditors. A neighboringrestaurant bought Deli Sisters Cafe's supplies at 80 percent ofcost. Sold the remaining fixtures for $8,000.
During January, sold equipment with a book value of $40,000 for$25,000.
Required
Following the safe payment approach, specify how cash is to bedistributed at the end of November, December, and January.
| Dennis | Edwards | Lacy | Ingram |
|---|
| November | $Answer | $Answer | $Answer | $Answer |
| December | $Answer | $Answer | $Answer | $Answer |
| January | $Answer | $Answer | $Answer | $Answer |
