3 Part 1 of 2 8.33 points eBook Print References ! Required information [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $49,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 45,000 75,000 65,000 Liabilities Butler, loan Butler, capital (25%) $ 185,000 45,000 125,000 185,000 175,000 $545,000 Osman, capital (25%) Ward, capital (50%) Total liabilities and capital 45,000 145,000 $ 545,000 The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $27,500, the building for $138,000, and the land for $180,000. 3. Distributed safe payments of cash. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $37,500 only. 6. Made final cash distributions to the partners. Check my work Journal entry worksheet 2 3 4 5 6 Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. Note: Enter debits before credits. Transaction 1 Cash Butler, capital Osman, capital General Journal Debit Credit Ward, capital Accounts receivable View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 5 6 Sold the office equipment for $27,500, the building for $138,000, and the land for $180,000. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Journal entry worksheet < 1 2 3 4 5 6 > Distributed safe payments of cash. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet 1 2 3 4 56 Paid all liabilities in full. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 Paid actual liquidation expenses of $37,500 only. Note: Enter debits before credits. Transaction 5 General Journal Debit Credit > Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Made final cash distributions to the partners. Note: Enter debits before credits. Transaction 6 00 6 General Journal Debit Credit View general journal Clear entry Record entry