9:47 1 App Store Last Scan Dec 02, 2018, 21:46:56 Part Cash Non Cash Rxq Bal 64,000 Assets | liab. W Cap C cop. 261, 000 38,0co |F. Cop 156,000 4 2,000 89, 0oo Liah_Pnit (38,000) (380D0) Liquid. ixp. (&, 000) X 60/ (48001 (1600) (ILoo) mo's (261,000) (56, boo ) /(52, 200) (52, 200) Potential_tal. $ 18, 000 (5,400) ( 11, 200) 35,200 Safe Bal $18,000 3 400 11 200 (17200) 64,000 - 108, 000 = (44,000) x 607. - 2 6, 400 -44, 000 + 20/.= 2,200 Cash Noncash Assets Liab Beg Bar/64,000 2 61,090) F Cap W Cup C cap 32,000 156,000 42,000 ?is afe Bal. (18,000) updateel Pal. 4 6,000 261,000 138,000 /56,000 4 2000 71, 000 Sale of non cash assd 64,000 (108, 000) (26,400 (8200 ( 8800) updated Bal 10, 300 153,000 32060 12 9,600 33200 627 00 Liab pmd. (39, 000) (3 2, 090) 72,000 753 000 129,600 33 200 62700 Rag. Bal. 12,000 153, 000 129, 600 | 3 3 200 )62200 Liquid exp. (490) max (8, 000) (41 900) /( 30 603 ) asset Loss 1 33, 000 / 1, 000 (go, boc Potential ta/ 64, 0co 30, Doo Share Email Fax More 1/ 1File Edit View History Bookmarks People Window Help Advanced Accounting by Hoyle x Advanced Accounting by Hoyle Problems/Exercises C https:/ewconnect.mheducation.com/flow/connect.html Complete this question by entering your answers in the tabs below. Required A Required B Required Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to part capital balances. (Do not round intermediate calculations.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Noncash Frick, Wilson, Clarke, Cash Assets Liabilities Capital (60%) Capital (20%) Capital (20%) Beginning balances $ 64,000 $ 261,000 $ 38,000 $ 156,000 $ 42,000 $ 89,000 Distribution 18,000 18,000 Updated balances $ 46,000 $ 261,000 $ 38,000 $ 156,000 $ 42:000 $ 71,000 Noncash assets sold 64,000 (108,000) (26,400) (8,800) (8,800) Updated balances $ 110,000 $ 153,000 $ 38,000 $ 129,600 $ 33,200 $ 62,200 Liabilities paid (38,000) (38,000) Updated balances 72,000 $ 153,000 First (remainder of first distribution) (64,000) (33,000) (1,000) (30,000) Next Next Updated balances $ 8,000 $ 153,000 0 $ 96,600 $ 32,200 32,200 Noncash assets sold 58,000 (153,000) (57,000) (19,000) (19,000) Updated balances 66,000 0 $ 39,600 $ 13,200 $ Liquidation expenses paid (3,600) (1,200) Updated balances 60,000 0 $ 36,000 $ 12,000 $ 12,000 Final distribution based on ending capital account balances 60,000 (39,000)(12,000) (12,000) Ending balance $ 0 $ (3,000) $ Required A Required C 2 DEC 3 MacBook ProThe partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 64,000 Liabilities $ 38,000 Noncash assets 261,000 Frick, capital (60%) 156,000 Wilson, capital (20%) 42,000 Clarke, capital (20%) 89,000 Total assets $325,000 Total liabilities and capital $325,000 I Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business: 1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $108,000 for $64,000. 3. Paid all liabilities. 4. Distributed cash based on safe capital balances again. 5. Sold remaining noncash assets for $58,000. 6. Paid actual liquidation expenses of $6,000 only. 7. Distributed remaining cash to the partners and closed the nancial records ofthe business permanently. Produce a nal statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners based on safe capital balances. Part C Prepare journal entries to record the liquidation transactions reected in the final statement of liquidation