A

B

C

The 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: Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $120,000 for $70,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $64,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Prepare a predistribution plan for this partnership. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not intermediate calculations.) 1 Record the entry for initial cash payments made to partners in accordance with predistribution plan. 2 Record the allocation of losses to partners on sale of noncash assets. 3 Record the extinguishment of all partnership liabilities. 4 Record the entry for cash payments made to partners in accordance with predistribution plan. 5 Record the allocation of losses to partners on sale of remaining noncash assets. 6 Record the payment of liquidation expenses. Record the entry for final cash payments made to partners based on ending capital balances