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1. Matthews, Williams, and Shen share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Matthews, $28,000 Cr.; Williams, $62,500 Cr.; Shen, $18,000 Dr.
(a) What term is applied to the debit balance in Shen's capital account?
(b) What is the amount of cash on hand?
(c) Journalize the transaction that must take place for Matthews and Williams to receive cash in the liquidation process equal to their capital account balances.
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