Problem
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 $10,000 Accounts receivable $6,000 Merchandise inventory $21,000 Equipment $30,000
LIABILITIES: Accounts Payable $7,750
PARTNER'S EQUITY: Richard's Capital $29,625 Overhill's Capital $29,625
LIQUIDATION TRANSACTION:
1. Complete the liquidation transactions outlined above.
2. How much cash will each partner receive at the final liquidation?