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 $7,500. At the date the partnership ceases operations, the balance sheet is as follows:

Cash $ 67,000 Liabilities $ 48,500 Noncash assets 260,000 Alex, capital 182,000 Bess, capital 96,500 Total assets $ 327,000 Total liabilities and capital $ 327,000

Part A: Prepare journal entries for the following transactions:

Distributed safe cash payments to the partners. Paid $29,100 of the partnerships liabilities. Sold noncash assets for $278,500. Distributed safe cash payments to the partners. Paid remaining partnership liabilities of $19,400. Paid $5,900 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.