Prepare a schedule showing how the cash available on February 1, 2011,should be distributed.

Prepare a schedule showing how the cash available on February 1, 2011,should be distributed.

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.


Price: £ 45

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