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 $8,000. At the date the partnership ceases operations, the balance sheet is as follows:

Cash$68,000

Noncash assets 270,000

Total assets$338,000

Liabilities$49,000

Alex, capital 189,000

Bess, capital 100,000

Total liabilities and capital$338,000

Part B: Prepare a final statement of partnership liquidation.

ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Non-cash Cash Liabilities Alex, Capital Bess, Capital Assets 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