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 $4,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets Total assets Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $20,700 of the partnership's liabilities. c. Sold noncash assets for $115,500. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $13,800. 1. Paid $2,900 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. Part B: Prepare a final statement of partnership liquidation. Complete this question by entering your answers in the tabs below. No 1 Required A Prepare journal entries for the following transactions that occurred in chronological order: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2 a. Distributed safe cash payments to the partners. b. Paid $20,700 of the partnership's liabilities. c. Sold noncash assets for $115,500. d. Distributed safe cash payments to the partners. 3 e. Paid remaining partnership liabilities of $13,800. f. Paid $2,900 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. 4 5 7 $ 45,000 105,000 $ 150,000 Transaction 2. b. C d. Liabilities Alex, capital Bess, capital Total liabilities and capital Required B e f Bess, Capital Cash Liabilities Cash Cash Answer is complete but not entirely correct. Noncash assets Alex, Capital Bess, Capital Bess, Capital Alex, Capital Cash Liabilities Cash Alex, Capital Bess, Capital Cash Alex, Capital Bess, Capital Cash $ 34,500 73,500 42,000 $ 150,000 General Journal Debit 6,500 20,700 115.500 37,356 78,144 X 13.800 2.030 670 X 424 X 676 X Credit 6,500 20,700 Show less A 105,000 7,350 3,150 115.500 13,800 2.000 1,100 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Answer is complete but not entirely correct. Updated balances Distribution to partners Closing balances ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Non- Cash Liabilities cash Assets $ 105,000 $ 45,000 (6,500) (20,700) 115,500 $ 133,300 $ (115,500) S (105,000) $ 17,800 S (13,800) (2,900) $ 1.100 S (1,100) O S $ 34,500 0 S Bess, Capital 42,000 (6,500) 3,150 38.650 (37,356) X 1.294 X (870) 424 X (424) X 0