Richard and Overhill are equal partners in the R & O Roofing firm. In the process of ending the business, they sell all of the partnerships' non-cash assets. Listed below are the assets and liabilities of the business:
Assets:
Cash in Bank $10000
Accounts Recievable$6000
Merchandise Inventory $21000
Equipment$30000
Liabilities:
Accounts Payable $7750
Partners Equity:
Richards Capital$29625
Overhills Capital$29625
Liquidation Transactions:
a. Customers will pay their accounts in full before the liquidation date. Receipt No. 35.
b. Merchandise inventory was sold for $20000 resulting in $1000 loss to the partnership. Reciept No. 36.
c. Equipment was sold for $35000 resulting in a gain of $5000 reciept No.37.
d. Accounts payable will be paid in full. Check No. 309.
1. Complete the liquidation transactions outlined above.
2. How much cash will each partner receive at the final liquidation?