Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $8,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash $ 57,000 Liabilities $ 43,500 Noncash assets 160,000 Alex, capital 96,000 Bess, capital 77,500 Total assets $ 217,000 Total liabilities and capital $ 217,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: Distributed safe cash payments to the partners. Paid $26,100 of the partnerships liabilities. Sold noncash assets for $173,500. Distributed safe cash payments to the partners. Paid remaining partnership liabilities of $17,400. Paid $6,800 in liquidation expenses; no further expenses will be incurred. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation.

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
Beginning balances	$57,000	$160,000	$43,500	$96,000	$77,500
Distribution to partners	(5,000)				(5,000)
Paid liabilities	(26,100)		(26,100)
Sold noncash assets	173,500	(160,000)		8,100	5,400
Updated balances	$199,400	$0	$17,400	$87,900	$67,100
Distribution to partners	173,500			104,100	69,400
Updated balances	$25,900	$0	$17,400	$(16,200)	$(2,300)
Paid liabilities
Paid liquidation expenses
Updated balances
Distribution to partners
Closing balances