Festus, capital
The partnership of Dolla, Earl, and Festus was dissolved on January 1, 2014. The balance sheet at that date is shown below:
Cash $ 12,000 Liabilities $ 36,000
Other assets 70,000 Loan from Dolla 1,000
Loan to Festus 8,000 Dolla, capital (20%) 6,000
Earl, capital (30%) 16,000
Festus, capital (50%) 31,000
Total assets $ 90,000 Total liab./equity $ 90,000
In January, $34,000 of the
Required:
Determine how the available cash on January 31, 2014 will be distributed. (Use a safe payments schedule.)
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