Part A The partnership ofWingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

Cash.$ 15,000 LO6 Accounts receivable . 82,000 Inventory.101,000 Land. 85,000 Building and equipment (net). 168,000 Total assets. $451,000 Liabilities. $ 74,000 Rodgers, loan. 35,000 Wingler, capital (30%). 120,000 Norris, capital (10%). 88,000 Rodgers, capital (20%). 74,000 Guthrie, capital (40%). 60,000 Total liabilities and capital .... $451,000 When the liquidation commenced, expenses of $16,000 were anticipated as being necessary to dis¬ pose of all property.

Prepare a predistribution plan for this partnership.

Part B The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:

• Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible.

• Sold the land, building, and equipment for $ 150,000.

• Made safe capital distributions.

• Learned that Guthrie, who has become personally insolvent, will make no further contributions.

• Paid all liabilities.

• Sold all inventory for $71,000.

• Made safe capital distributions again.

• Paid liquidation expenses of $ 11,000.

• Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

Prepare journal entries to record these liquidation transactions.