Accounting Midterm Exam ACG-2011: Question 26

Mack, Harris, and Huss are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Mack, $15,600, Harris, $15,600, Huss, $(2,600). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $28,600 in cash to be distributed. Huss pays $2,600 to cover the deficiency in his account. The general journal entry to record the final distribution would be:

→	Debit Mack, Capital $15,600; debit Harris, Capital $15,600; credit Cash $31,200.
	Debit Mack, Capital $9,534; debit Harris, Capital $9,533; debit Huss, Capital $9,533; credit Cash $28,600.
	Debit Cash $28,600; debit Huss, Capital $2,600; credit Mack, Capital $15,600; credit Harris, Capital $15,600.
	Debit Mack, Capital $15,600; debit Harris, Capital $15,600; credit Huss, Capital $2,600; credit Cash $28,600.
	Debit Mack, Capital $14,300; debit Harris, Capital $14,300; credit Cash $28,600.

		Capital
	Cash	Mack	Harris	Huss
	$28,600	$15,600	$15,600	$(2,600)
Contribution by Huss	2,600			2,600
Allocate cash	(31,200)	(15,600)	(15,600)	0