Arnold, Bell and Crane agree to liquidate their partnership as soon as possible. The partnership agreement calls for salaries of $30,000 and $40,000 for Arnold and Bell, respectively; any remaining profit or loss is divided in a 2:3:5 ratio. The pre-closing trial balance for the partnership at July 31, 2014, the end of the lirm's fiscal year, is: 1

Required
a. Prepare a schedule showing the balances in the capital accounts prior to liquidation.
b. Prepare a cash distribution plan for the liquidation.
c. Compute the amount that must be realized from the other assets to liquidate the liabilities and drive all capital accounts to zero.

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Account Debit Credit 84,500 260,000 Other assets. LiabilitiesN._. Loan payable-Crane Capital Amold Capital Bell. Capital Crane.. Sales Operating expenses438,000 Drawings-Amold $110,000 30,000 70,000 65,000 45,000 553,000 50,000 Drawings-Crane. Totals..AR 25,500 15,000 $873,000 $873,000