The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Doc, Fae, and Hal partnership began its liquidation: Cash $140,000 Liabilities $ 60,000 Accounts receivable 60,000 Loan from Fae 20,000 Inventories 85,000 Doc capital (20%) 75,000 Plant assets—net 200,000 Fae capital (40%) 200,000 Loan to Doc 25,000 Hal capital (40%) 155,000 $510,000 $510,000 If available cash except for a $5,000 contingency fund is distributed immediately, Doc, Fae, and Hal, respectively, should receive: a. $0, $60,000, and $15,000 b. $11,000, $22,000, and $22,000 c. $0, $70,000, and $5,000 d. $0, $27,500, and $27,500

The following balance sheet summary, together with residual profit-sharing ratios, was developed on April 1, 2011, when the Doc, Fae, and Hal partnership began its liquidation: Cash $140,000 Liabilities $ 60,000 Accounts receivable 60,000 Loan from Fae 20,000 Inventories 85,000 Doc capital (20%) 75,000 Plant assets—net 200,000 Fae capital (40%) 200,000 Loan to Doc 25,000 Hal capital (40%) 155,000 $510,000 $510,000 If available cash except for a $5,000 contingency fund is distributed immediately, Doc, Fae, and Hal, respectively, should receive: a. $0, $60,000, and $15,000 b. $11,000, $22,000, and $22,000 c. $0, $70,000, and $5,000 d. $0, $27,500, and $27,500

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 5CE

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bartleby, a Learneo, Inc. business

Cash	$140,000	Liabilities	$ 60,000
Accounts receivable	60,000	Loan from Fae	20,000
Inventories	85,000	Doc capital (20%)	75,000
Plant assets—net	200,000	Fae capital (40%)	200,000
Loan to Doc	25,000	Hal capital (40%)	155,000
	$510,000		$510,000