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Question
McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $15,000, Harris, $15,000, Hussin, $(2,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $28,000 in cash to be distributed. Hussin pays $2,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
A.
| McCartney, Capital................................. | 15,000 | |
| Harris, Capital......................................... | 15,000 | |
| Cash............................................... | 30,000 |
B.
| McCartney, Capital................................. | 14,000 | |
| Harris, Capital......................................... | 14,000 | |
| Cash............................................... | 28,000 |
C.
| McCartney, Capital................................. | 15,000 | |
| Harris, Capital......................................... | 15,000 | |
| Hussin, Capital.............................. | 2,000 | |
| Cash............................................... | 28,000 |
D.
| Cash.......................................................... | 15,000 | |
| Hussin, Capital......................................... | 15,000 | |
| McCartney, Capital......................... | 2,000 | |
| Harris, Capital................................. | 28,000 |
E.
| McCartney, Capital................................. | 9,334 | |
| Harris, Capital......................................... | 9,333 | |
| Hussin, Capital........................................ | 9,333 | |
| Cash............................................... | 28,000 |
Answer
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