P 17-9 Installment liquidation—Safe payments schedules The balance sheet of Ron, Sue, and Tom, who share partnership profits 30 percent, 30 percent, and 40 percent, respectively, included the following balances on January 1, 2016, the date of dissolution:

Cash $ 20,000 Liabilities $ 40,100 Other assets 130,000 Loan from Ron 5,000 Loan to Sue 10,000 Ron capital 9,900 Sue capital 45,000 Tom capital 60,000

$160,000 $160,000 During January 2016, parts of the firm’s assets are sold for $40,000. In February the remaining assets are sold for $21,000. Assume that available cash is distributed to the proper parties at the end of January and at the end of February.

REQuIRED: Prepare a statement of partnership liquidation with supporting safe payments schedules for each cash distribution. (It will not be possible to determine the actual gains and losses in January.)

Partnership Liquidation 591