Masters, Hardy, and Rowen are dissolving their partnership. Their partnership ag
ID: 2418437 • Letter: M
Question
Masters, Hardy, and Rowen are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Masters, $15,000; Hardy, $15,000; Rowen, $(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. Rowen pays $2,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Explanation / Answer
Master's Capital ................................15000
Hardy's Capital...................................15000
To Cash.....................................................30000