3) The partnership of Georgia, Holly, and Izzy was dissolved, and by July 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on July 1, 2011 (with partner residual profit and loss sharing percentages) was as follows:
Cash$10,000Georgia, capital (40%)$ (20,000)
Holly, capital (30%)(10,000)
Izzy, capital (30%) 40,000
Total assets$10,000Total liab./equity$10,000
The value of the partners' personal assets and liabilities on July 1, 2011 were as follows:
Prepare the final statement of partnership liquidation.