EXERCISE 16-10 Rights of Various Parties LO 3 The trial balance for the MAD Partnership is as follows just before declaring bankruptcy. Cash Other Assets Liabilities Matt Loan Matt Capital Allen Capital Dave Capital $20,000 $100,000 = $18,000 $10,000 $44,000 $30,000 $18,000 Partners share profits in the ratio 45:30:25. Required: A. Prepare a schedule to show how available cash would be distributed to the partners after creditors are paid in full. State which partner would receive the first cash available and at what point and to what degree each of the remaining partners would participate in cash distributions.
EXERCISE 16-10 Rights of Various Parties LO 3 The trial balance for the MAD Partnership is as follows just before declaring bankruptcy. Cash Other Assets Liabilities Matt Loan Matt Capital Allen Capital Dave Capital $20,000 $100,000 = $18,000 $10,000 $44,000 $30,000 $18,000 Partners share profits in the ratio 45:30:25. Required: A. Prepare a schedule to show how available cash would be distributed to the partners after creditors are paid in full. State which partner would receive the first cash available and at what point and to what degree each of the remaining partners would participate in cash distributions.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I only need part A, please.
Transcribed Image Text:**EXERCISE 16-10**
**Rights of Various Parties LO 3**
The trial balance for the MAD Partnership is as follows just before declaring bankruptcy:
| Cash | Other Assets | Liabilities | Matt Loan | Matt Capital | Allen Capital | Dave Capital |
|-------|--------------|-------------|-----------|--------------|---------------|--------------|
| $20,000 | $100,000 | $18,000 | $10,000 | $44,000 | $30,000 | $18,000 |
Partners share profits in the ratio 45:30:25.
**Required:**
A. Prepare a schedule to show how available cash would be distributed to the partners after creditors are paid in full. State which partner would receive the first cash available and at what point and to what degree each of the remaining partners would participate in cash distributions.
B. Cash of $30,000 is available to partners after the creditors have been paid in full. Prepare the general journal entry to record the distribution of $30,000.
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