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Question
Rodriguez, Sate, and Melton are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Rodriguez, $30,000; Sate, $30,000; and Melton, $(4,000). After all the assets are sold and liabilities are paid, but before any contributions are considered to cover any deficiencies, there is $56,000 in cash to be distributed. Melton pays $4,000 to cover the deficiency in her account. The general journal entry to record the final distribution would be:
A.
| Rodriguez, Capital.................................... | 30,000 | |
| Sate, Capital............................................. | 30,000 | |
| Cash............................................... | 60,000 |
B.
| Rodriguez, Capital.................................... | 28,000 | |
| Sate, Capital............................................. | 28,000 | |
| Cash............................................... | 56,000 |
C.
| Rodriguez, Capital.................................... | 30,000 | |
| Sate, Capital............................................. | 30,000 | |
| Melton, Capital.............................. | 4,000 | |
| Cash............................................... | 56,000 |
D.
| Cash......................................................... | 56,000 | |
| Melton, Capital........................................ | 4,000 | |
| Rodriguez, Capital........................ | 30,000 | |
| Sate, Capital................................... | 30,000 |
E.
| Rodriguez, Capital.................................... | 18,667 | |
| Sate, Capital............................................. | 18,667 | |
| Melton, Capital........................................ | 18,666 | |
| Cash............................................... | 56,000 |
Answer
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