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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances. Cash Noncash assets $ 64,000 225,000 Liabilities Frick, capital (60%) Wilson, capital (20%) clarke, capital (20%) Total liabilities and capital Total assets $289,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $96,000 for $64,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $52,000. 6. Paid actual liquidation expenses of $7,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. 2. Sold noncash assets with a book value of $96,000 for $64,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $52,000. 6. Paid actual liquidation expenses of $7,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. a Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership. Frick, Capital Wilson, Capital Clarke, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Required A Required B Required C Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do intermediate calculations.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Cash Noncash Assets Wilson, Clarke, Frick, Capital Liabilities Capital Capital (60%) (20%) (20%) $ 44,000 $ 132,000 132,000 $ 36,000 $ 77,000 Beginning balances $ 64,000 $ 225,000 Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances Final distribution based on ending capital account balances Ending balance Required A Required B Required C Prepare journal entries to record the liquidation transactions reflected in the final statement o transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
