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In: Accounting

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

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, 2014, 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 CAFÉ
Balance Sheet
November 2, 2014
Cash $24,000 Liabilities $40,080
Supplies 12,000 Loan-Ingram 16,000
Equipment 120,000 Capital-Dennis 41,600
Fixtures 32,000 Capital-Edwards 36,000
Capital-Lacy 15,920
Capital-Ingram 38,400
Total assets $188,000 Total liabilities and capital $188,000

Additional information:

During November, sold half of the fixtures for $4,000. Sold equipment with a book value of $24,000 for $17,600.

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 $6,400.

During January, sold equipment with a book value of $32,000 for $22,400.

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 Answer Answer Answer
January Answer Answer Answer Answer

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