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 $ 8500. At the date the partnership ceases operations, the balance sheet is as follows:

cash $ 57000 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:

a. Distributed safe cash payments to the partners

b. Paid $26,100 of the partnership's liabilities

c. Sold noncash assets for $ 173,500

d. Distributed safe cash payments to the partners

e. Paid remaining partnership liabilities of $ 17,400

f. Paid $ 6,800 in liquidation expenses; no further expenses will be incurred

g. Distributed remaining cash held by the business to the partners.

Part B: Prepare a financial statement of partnership liquidation.

Alex and Bess Partnership

Statement of Partnership Liquidation

Cash Non cash assets liabilities Alex Capita Bess Capital

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