Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $4,000. At the date the partnership ceases operations, the balance sheet is as follows:

Part A: Prepare journal entries for the following transactions that occurred in chronological order:

1. Distributed safe cash payments to the partners.
2. Paid $27,000 of the partnerships liabilities.
3. Sold noncash assets for $205,000.
4. Distributed safe cash payments to the partners.
5. Paid remaining partnership liabilities of $18,000.
6. Paid $2,000 in liquidation expenses; no further expenses will be incurred.
7. Distributed remaining cash held by the business to the partners.

1. Part B: Prepare a final statement of partnership liquidation.

Cash Noncash assets $ 60,000 190,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 45,000 133,000 72,000 $ 250,000 Total assets $ 250,000 No Transaction General Journal Debit Credit 1 a. Bess, Capital Cash 2 b. Liabilities Cash 3 C. Cash Alex, Capital Bess, Capital Noncash assets 4 d. Alex, Capital Bess, Capital Cash 5 e. . Liabilities Cash 6 f. Alex, Capital Bess, Capital Cash 7 g. Alex, Capital Bess, Capital Cash Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Cash Non-cash Assets Liabilities Alex, Capital Bess, Capital $ 60,000 $ 190,000 $ 45,000 $ 133,000 $ 72,000 Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances