Calculate how $246,200 is paid to partners and,

Show calculations behind journal entries 3 and 9

Problem 10-32 (LO 10-2, 10-5) Part A The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process: Cash Accounts receivable Inventory Land Building and equipment (net) $ 57,000 124,000 143,000 106,000 189,000 Liabilities Rodgers, loan Wingler, capital (30%) Norris, capital (10%) Rodgers, capital (20%) Guthrie, capital (40%) Total liabilities and capital $ 58,000 77,000 183,000 130,000 95,000 76,000 $619,000 Total assets $619,000 When the liquidation commenced, liquidation expenses of $23,000 were anticipated as being necessary to dispose of all property. Prepare a predistribution plan for this partnership. Part B The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership: 1. Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible. 2. Sold the land, building, and equipment for $171,000. 3. Made safe capital distributions. 4. Learned that Guthrie, who has become personally insolvent, will make no further contributions. 5. Paid all liabilities. 6. Sold all inventory for $96,000. 7. Made safe capital distributions again. 8. Paid actual liquidation expenses of $14,000 only. 9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent. 03 Wingler, Capital Norris, Capital Rodgers, Loan Rodgers, Capital Cash 63,600 90,200 77,000 15,400 246,200 9.a 3,960 Wingler, Capital Norris, Capital Rodgers, Capital Guthrie, Capital 1,320 2,640 7,920 Problem 10-32 (LO 10-2, 10-5) Part A The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process: Cash Accounts receivable Inventory Land Building and equipment (net) $ 57,000 124,000 143,000 106,000 189,000 Liabilities Rodgers, loan Wingler, capital (30%) Norris, capital (10%) Rodgers, capital (20%) Guthrie, capital (40%) Total liabilities and capital $ 58,000 77,000 183,000 130,000 95,000 76,000 $619,000 Total assets $619,000 When the liquidation commenced, liquidation expenses of $23,000 were anticipated as being necessary to dispose of all property. Prepare a predistribution plan for this partnership. Part B The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership: 1. Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible. 2. Sold the land, building, and equipment for $171,000. 3. Made safe capital distributions. 4. Learned that Guthrie, who has become personally insolvent, will make no further contributions. 5. Paid all liabilities. 6. Sold all inventory for $96,000. 7. Made safe capital distributions again. 8. Paid actual liquidation expenses of $14,000 only. 9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent. 03 Wingler, Capital Norris, Capital Rodgers, Loan Rodgers, Capital Cash 63,600 90,200 77,000 15,400 246,200 9.a 3,960 Wingler, Capital Norris, Capital Rodgers, Capital Guthrie, Capital 1,320 2,640 7,920