33. Part A The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate opera- tions and liquidate the business. Liquidation expenses of $34,000 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 $ 30,000 60,000 50,000 110,000 100,000 $350,000 Liabilities Butler, loan. Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital. $170,000 30,000 50,000 30,000 70,000 $350,000 Prepare a predistribution plan for this partnership. Part B 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 $20,000, the building for $80,000, and the land for $120,000. 3. Made safe capital distributions. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $30,000 only. 6. Made final cash distributions to the partners. Prepare journal entries to record these liquidation transactions