Several years ago, Ann Dennis, Jill Edwards, Lee Lacy, and Sarah Ingram formed a partnership...

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Accounting

Several years ago, Ann Dennis, Jill Edwards, Lee Lacy, and Sarah Ingram formed a partnership to operate the Deli Sisters Cafe. Rerouting of bus lines caused declines in patronage to the extent that the partners have agreed to dissolve the partnership and liquidate the assets. The November 2, 2017, balance sheet of the Deli Sisters Cafe and other data appear below. The partnership agreement did not specify how profits and losses were to be shared.

DELI SISTERS CAF Balance Sheet November 2, 2017
Cash $30,000 Liabilities $50,100
Supplies 15,000 Loan-Ingram 20,000
Equipment 150,000 Capital-Dennis 52,000
Fixtures 40,000 Capital-Edwards 45,000
Capital-Lacy 19,900
Capital-Ingram 48,000
Total assets $235,000 Total liabilities and capital $235,000

Additonal information:

  1. During November, sold half of the fixtures for $5,000. Sold equipment with a book value of $30,000 for $22,000.
  2. During December, paid all outside creditors. A neighboring restaurant bought Deli Sisters Cafe's supplies at 80 percent of cost. Sold the remaining fixtures for $8,000.
  3. During January, sold equipment with a book value of $40,000 for $28,000.

Required

Following the safe payment approach, specify how cash is to be distributed at the end of November, December, and January.

Dennis Edwards Lacy Ingram
November Answer

Answer

Answer

Answer

December Answer

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January Answer

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