CH10 Q2 JE

The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Required: 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 $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $108,000 for $64,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5 . Sold remaining noncash assets for $58,000. 6. Paid actual liquidation expenses of $6,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Prepare 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. Prepare a predistribution plan for this partnership. Note: Do not round intermediate calculations. Round your final answers to the Prepare a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Note: Do not round intermediate calculations. Round vour final answers to the nearest whole dollar amount. Prepare journal entries to record the liquidation transactions reflected in the final statement of liquida Note: If no entry is required for a transaction/event, select "No journal entry required" in the first acc Journal entry worksheet Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits