Rodriguez, Sate and Melton Are Dissolving Their Partnership

question 111

Multiple Choice

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, 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:

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in market equilibrium.

Agricultural Product

Goods resulting from the cultivation of plants and rearing of animals intended for human use or consumption.

Subsidies

Financial support provided by a government to reduce the costs of producing goods or services, intended to encourage production or consumption.