Several years ago, Ann Dennis, Jill Edwards, Lee Lacy, and Sarah Ingram formed a partnership...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Several years ago, Ann Dennis, Jill Edwards, Lee Lacy, and Sarah Ingram formed a partnership to operate the Deli Sisters Cafe. Rerouting of bus lines caused declines in patronage to the extent that the partners have agreed to dissolve the partnership and liquidate the assets. The November 2, 2017, balance sheet of the Deli Sisters Cafe and other data appear below. The partnership agreement did not specify how profits and losses were to be shared.
DELI SISTERS CAF Balance Sheet November 2, 2017
Cash
$30,000
Liabilities
$50,100
Supplies
15,000
Loan-Ingram
20,000
Equipment
150,000
Capital-Dennis
52,000
Fixtures
40,000
Capital-Edwards
45,000
Capital-Lacy
19,900
Capital-Ingram
48,000
Total assets
$235,000
Total liabilities and capital
$235,000
Additonal information:
During November, sold half of the fixtures for $5,000. Sold equipment with a book value of $30,000 for $22,000.
During December, paid all outside creditors. A neighboring restaurant bought Deli Sisters Cafe's supplies at 80 percent of cost. Sold the remaining fixtures for $8,000.
During January, sold equipment with a book value of $40,000 for $28,000.
Required
Following the safe payment approach, specify how cash is to be distributed 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
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!