Safe payments schedule
The partnership of Denver, Elsie, Fannie, and George is being liquidated over the first few months of 2011. The trial balance at January 1, 2011, is as follows:
|
Debits |
Credits |
|
|
Cash |
$200,000 |
|
|
Accounts receivable |
56,000 |
|
|
Inventory |
142,000 |
|
|
Equipment (net) |
300,000 |
|
|
Land |
150,000 |
|
|
Loan to Denver |
20,000 |
|
|
Accounts payable |
$400,000 |
|
|
Denver capital (20%) |
170,000 |
|
|
Elsie capital (10%) |
80,000 |
|
|
Fannie capital (50%) |
140,000 |
|
|
George capital (20%) |
78,000 |
|
|
$868,000 |
$868,000 |
ADDITIONAL INFORMATION
1. The partners agree to retain $20,000 cash on hand for contingencies and to distribute the rest of the available cash at the end of each month.
2. In January, half of the receivables were collected. Inventory that cost $75,000 was liquidated for $45,000. The land was sold for $250,000.
REQUIRED: Prepare a schedule of safe payments for the Denver, Elsie, Fannie, and George partnership for January 31, 2011.