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 that occurred in chronological order:

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.

Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.)

ALEX AND BESS PARTNERSHIP
Statement of Partnership Liquidation
	Cash	Non-cash Assets	Liabilities	Alex, Capital	Bess, Capital
Beginning balances	$57,000	$160,000
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	$0	$0	$0	$0	$0