Brazier, Moore, and Jonah are partners of Bright Sales LLP, sharing income and losses in a ratio of 2:2:1, respectively. The partners decide to liquidate the partnership. The capital account balances prior to liquidation and the sale of assets, on May 1, 2015, are as follows:
Brazier ...................................... $15,000
Moore ...................................... 35,000
Jonah ....................................... 22,000
Total ........................................ $72,000
In winding up operations during the month of May, accounts receivable with a carrying value of $94,000 are sold for $90,000, and liabilities of $30,000 are satisfied. Prior to liquidation, the LLP has a cash balance of $8,000.
a. Prepare a statement of partnership liquidation.
b. Provide the journal entry for the final cash distribution to partners.