Cash Distribution Schedule
The unsuccessful partnership of the Jones Brothers is about to undergo liquidation. They have asked you to estimate the amount of cash that each brother will receive. They share profits and losses equally.
|
Cash |
$ 22,000 |
Liabilities |
$ 35,000 |
|
|
Noncash Assets |
110,000 |
Doug, Capital |
55,000 |
|
|
Dave, Capital |
50,000 |
|||
|
Dan, Capital |
(8,000) |
|||
|
$132,000 |
$132,000 |
Both Doug and Dave are personally solvent, but Dan is not. They estimate that they will receive $65,000 from the sale of the noncash assets.
Required:
Prepare a schedule to estimate the amount of cash each brother will receive.