After all noncash assets have been converted into cash in the liquidation of the Maris and DeMarco partnership, the ledger contains the following account balances:
|
Debit |
Credit |
|
|
Cash |
$34,000 |
— |
|
Accounts payable |
— |
$25,000 |
|
Loan payable to Maris |
— |
9,000 |
|
Maris capital |
8,000 |
— |
|
DeMarco capital |
— |
8,000 |
Available cash should be distributed as follows: $25,000 to accounts payable and:
a $9,000 for loan payable to Maris
b $4,500 each to Maris and DeMarco
c $1,000 to Maris and $8,000 to DeMarco
d $8,000 to Maris and $1,000 to DeMarco