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 $5,000. At the date the partnership ceases operations, the balance sheet is as follows:

Cash	$	47,000	Liabilities	$	35,500
Noncash assets		125,000	Alex, capital		75,000
			Bess, capital		61,500
Total assets	$	172,000	Total liabilities and capital	$	172,000

Part A: Prepare journal entries for the following transactions:

1. Distributed safe cash payments to the partners.
2. Paid $21,300 of the partnerships liabilities.
3. Sold noncash assets for $136,500.
4. Distributed safe cash payments to the partners.
5. Paid remaining partnership liabilities of $14,200.
6. Paid $3,700 in liquidation expenses; no further expenses will be incurred.
7. Distributed remaining cash held by the business to the partners.

a. Record the initial distribution of available cash based on safe capital balance.

b. Record the payment of the partnerships liabilities.

c. Record the sale of noncash assets.

d.Record the entry to distribute safe cash payments to the partners.

e.Record the payment of all remaining partnership liabilities.

f.Record the payment of liquidation expenses.

g.Record the entry to distribute remaining cash held by the business to the partners.

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

Prepare a final statement of partnership liquidation. ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation 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