Cash Distribution Schedule The ABC Partnership is in the process of liquidation. The account balances prior to liquidation are given below: Debits Credits Cash $ 72,000 Liabilities $ 40,000 Amos, Drawing 10,000 Boone, Loan 8,000 Boone, Drawing 15,000 Childs, Loan 25,000 Childs, Drawing 20,000 Amos, Capital 49,000 Operating Loss 21,000 Boone, Capital 18,000 Liquidation Loss 12,000 Childs, Capital 10,000 Total 150,000 Total 150,000 The partners share profits in the following ratio: Amos, 1/5; Boone, 2/5; Childs, 2/5. Required: Prepare a schedule showing the calculations of the distribution of cash under the Uniform Partnership Act, assuming that all three partners have personal liabilities in excess of their personal assets. Installment Liquidation Hann, Murphey, and Ryan have operated a retail furniture store for the past 30 years. Their business has been unprofitable for several years, since several large discount furniture stores opened in their sales territory. The partners recognize that they will be unable to compete with the larger chain stores and decide that since all the partners are near retirement, they should liquidate their business before it is necessary to declare bankruptcy. Account balances just before the liquidation process began were as follows: Cash 10,000 Liabilities 110,000 Other Assets 218,000 Hann Capital 50% 50,000 Murphey, Capital 30% 42,000 Ryan, Capital 20% 26,000 Total 228,000 Total 228,000 Asset realization is accomplished in four stages as follows: March 15, 2019: During liquidation sale, noncash assets with a book value of $90,000 were sold for $80,000. March 16, 2019: Sold accounts receivable with a book value of $30,000 to a factory for $26,000. March 16, 2019: Paid all recorded partnership creditors. March 18, 2019: Distributed all but $1,000 of available cash to partners. 1 March 19, 2019: Murphey withdrew from inventory furniture with a book value of $10,000 and a market value of $13,000 to satisfy part of his capital interest. March 21, 2019: Sold remainder of inventory with a book value of $50,000 to a discount furniture store for $30,000 cash. March 25, 2019: Assigned for $12,000 cash the remaining term of the lease on the warehouse. The lease was accounted for as an operating lease. March 25, 2019: Distributed all available cash to partners. April 1, 2019: Hann agreed to accept two vehicles with a book value of $10,000 and a market value of $8,000 in partial settlement of his capital interest. April 5, 2019: All remaining assets were sold for $4,000. April 6, 2019: Received additional cash from partners with debit capital balances. April 6, 2019: Distributed available cash to partners. The partners prefer that cash be distributed as soon as it is available. Required: Prepare a summary in columnar form of the partnership realization and liquidation. You should prepare supporting schedules of safe payments before each cash distribution.