Henry, Luther, and Gage are dissolving their partnership. Their partnership agreement allocates each partner 1/3 of all income and losses. The current period's ending capital account balances are Henry, $45,000; Luther, $37,000; and Gage, $(5,000). After all assets are sold and liabilities are paid, there is $77,000 in cash to be distributed. Gage is unable to pay the deficiency. What amount of cash will Gage receive upon liquidation

b. Debit Henry, Capital $42,500; debit Luther, Capital $34,500; credit Cash $77,000. Debit Henry, Capital $45,000; debit Luther, Capital $37,000; credit Gage, Capital $5,000; credit Cash $77,000.

Explanation:

The deficiency will apportioned to Henry and Luther equally.

Henry capital becomes = 45,000 - 2,500 = $42,500

Luther capital becomes = 37,000 - 2,500 = $34,500

The $77,000 will then be debited to their capital accounts to recognize the balance left in their accounts:

= 42,500 + 34,500

= $77,000

Credit Gage for $5,000 to recognize that Henry and Luther paid off the deficiency.

-the personal ownership of property

-the influence of consumer demand

explanation:

the command economy prohibits the personal ownership of property.

basically, command economy is defined as the system where a nation’s government is the one that makes all the decisions when it comes to its economy. the government is the one who controls the production of goods and services and regulates the prices and salaries.

therefore, since that the government is the authority, then all kinds of personal ownership of property is prohibited by them.