1. 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 $8,500. At the date the partnership ceases operations, the balance sheet is as follows:

Cash	$	57,000	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:

1. Distributed safe cash payments to the partners.
2. Paid $26,100 of the partnerships liabilities.
3. Sold noncash assets for $173,500.
4. Distributed safe cash payments to the partners.
5. Paid remaining partnership liabilities of $17,400.
6. Paid $6,800 in liquidation expenses; no further expenses will be incurred.
7. Distributed remaining cash held by the business to the partners.

Part B: Prepare a final statement of partnership liquidation.

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