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, $15,300, Hardy, $15,300, Rowen, $(2300). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $28,300 in cash to be distributed. Rowen pays $2300 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
A. Debit Masters, Capital $15,300; debit Hardy, Capital $15,300; credit Cash $30,600.
B. Debit Cash $28,300; debit Rowen, Capital $2300; credit Masters, Capital $15,300; credit Hardy, Capital $15,300.
C. Debit Masters, Capital $9434; debit Hardy, Capital $9433; debit Rowen, Capital $9433; credit Cash $28,300.
D. Debit Masters, Capital $14,150; debit Hardy, Capital $14,150; credit Cash $28,300.
E. Debit Masters, Capital $15,300; debit Hardy, Capital $15,300; credit Rowen, Capital $2300; credit Cash $28,300.
Answer: A
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