Refer to the facts in Problem 16-15. The partners have decided to liquidate their partnership by installments instead of accepting the $100,000 offer. Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions follows:
July
1. Collected $16,500 on accounts receivable; balance is uncollectible.
2. Received $10,000 for the entire inventory.
3. Paid $1,000 liquidation expense.
4. Paid $17,000 to creditors.
5. Retained $8,000 cash in the business at the end of the month.
August
6. Paid $1,500 in liquidation expenses.
7. As part payment of his capital, Torves accepted an item of special equipment that he developed, which had a book value of $4,000. The partners agreed that a value of $10,000 should be placed on this item for liquidation purposes.
8. Retained $2,500 cash in the business at the end of the month.
September
9. Received $75,000 on sale of remaining plant and equipment.
10. Paid $1,000 liquidation expenses, retaining no cash in the business.
In Problem 16-15

Required
Prepare a statement of partnership realization and liquidation with supporting schedules of safe payments topartners.

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Debit Credit Cash Accounts Receivable (net) Inventory Plant & Equipment (net) Accounts Payable Pen, Capital Evan, Capital Torves, Capital Total S 6,000 22,000 14,000 99,000 S 17,000 55,000 45,000 24,000 $141,000 $141,000