Simple liquidation—Schedule of cash available

The partnership of Folly and Frill is in the process of liquidation. On January 1, 2011, the ledger shows account balances as follows:

Cash

$10,000

Accounts payable

$15,000

Accounts receivable

25,000

Folly capital

40,000

Lumber inventory

40,000

Frill capital

20,000

$21,000 are collected. No further collections on the receivables are expected. Profits are shared 60 percent to Folly and 40 percent to Frill.

REQUIRED: Prepare a schedule showing how the cash available on February 1, 2011, should be distributed.