The partnership of Flo and Fay is in the process of liquidation. On
January 1, 2011, the ledger shows account balances as follows:
Cash $10,000 Accounts Payable $15,000
Accounts Receivable 25,000 Flo capital $40,000
Lumber inventory 40,000 Flay capital 20,000
On January 10, 2011, the lumber inventory is sold for $25,000, and
during January, accounts receivable of $21,000 is collected. No further
collections on the receivables are expected. Profits are shared 60
percent to Flo and 40 percent to Fay.
Required: Prepare a schedule showing how the cash available on February 1, 2011,should be distributed.