After working for In the Kitchen remodeling business for several years, Terry and Phyllis decided to go into business for themselves and formed the Kitchens Just for You partnership. Three years ago, they admitted Connie as a partner and recognized goodwill at that time because of her good client list for planned kitchen makeovers. However, they were not able to gain a sufficient market for new customers and on September 1, 20X9, they agreed to dissolve and liquidate the business. They decided on an installment liquidation to complete the projects already initiated. The balance sheet, with profit and losssharing percentages at the beginning of liquidation, is as follows:

Connies loan was for working capital; the loan to Terry was for his unexpected personal medical bills. During September 20X9, the first month of liquidation, the partnership collected $38,000 in receivables and decided to write off $9,000 of the remaining receivables. Sales of one-half of the book value of the inventory realized a loss of $6,000. The partners estimate that the costs of liquidating the business (newspaper ads, signs, etc.), are expected to be $9,000 for the remainder of the liquidation process. Required: Prepare a schedule of safe payments to partners as of September 30, 20X9, to show how the available cash should be distributed to the partners. Please follow the practical guidelines when completing this worksheet.

Everything already filled in is correct, please help me finish the problem.

Assets Cash Receivables Terry, Loan Inventory Goodwill Total Assets KITCHENS JUST FOR YOU Balance Sheet September 1, 2009 Liabilities and Equities $ 24,000 Accounts Payable 60,000 Connie, Loan 9,000 Terry, Capital (25%) 52,000 Phyllis, Capital (60%) 27,000 Connie, Capital (15%) $172,000 Total Liabilities & Equities $ 46,000 18,000 10,200 39,000 58,800 $172,000 KITCHENS JUST FOR YOU $ $ Schedule of Safe Payments to Partners Terry Capital balances, September 1, 20X9 $ 10,200 $ Loans to (from) partner 01 Total $ 10,200 $ Write-off of goodwill 6,750 Write-off of receivables 2,250 Loss on sale of inventory 1,500 Capital balances, September 30, 20X9 $ (300) $ Possible loss for remaining receivables and inventory Possible liquidation costs 2,250 Balances $ (2,550) $ Distribute any potential deficits Safe payments to partners, September 30, 20X9 $ (2,550) $ Phyllis 39,000 0 39,000 16,200 5,400 3,600 13,800 Connie 58,800 18,000 76,800|| 4,050 1,350 900|| 70,500 $ 5,400 8,400 1,350 69,150 $ 8,400 $ 69,150