Cher On January 1, 20x1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 6:3:1, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows: Credit Debit $ 21,800 75,500 61,500 198,500 Cash Accounts Receivable Inventory Machinery and Equipment (net) Accounts Payable Art, Capital Bru, Capital Chou, Capital Total $ 56,800 97,500 119,500 83,500 $357,300 $357,300 The partners plan a program of piecemeal conversion of assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 20X1 1. Collected $58,500 on accounts receivable; the balance is uncollectible. 2. Received $43,500 for the entire inventory. 3. Paid $3,900 liquidation expenses. 4. Paid $52,600 to creditors, after offset of a $4,200 credit memorandum received on January 11, 20X1. 5. Retained $12,100 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 20X1 6. Paid $5,900 liquidation expenses. 7. Retained $6,200 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 20X1 8. Received $155,400 on sale of all items of machinery and equipment. 9. Paid $4,400 liquidation expenses. 10. Retained no cash in the business. Required: Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners. (Round your answers to nearest whole dollar) ABC PARTNERSHIP Statement of Partnership Realization and Liquidation For the period from January 1, 20x1, through March 31, 20x1 Cash 21,800 OthertAssets Accounts Payable 335,500 56,800 Capital Balances Art Bru 97,500 119,500 Chou 83,500 Balances before liquidation, January 1, 20X1 January transactions: Collection of accounts receivable at a loss Sale of inventory at a loss Liquidation expenses paid Share of credit memorandum Payments to creditors 10.200 10,800 2,340 2,520 58,500 43,500 3,000 0 (52,600) 75,100 $ 55.200 19,900 $ 75,500 61,500 0 0 0 198,500 $ 0 198,500 $ 0 of 0 4.200 (52,600) 8,400 $ 0 8.400 $ 5,100 5.400 1,170 1.260 0 109,090 $ 8,650 100,440 $ 1,700 1,800 390 420 0 80,030 46,550 33,480 0 $ Safe payments to partners 76,680 $ 0 76.680 $ s February transactions: AFEL Check my wo > 1 > 130.00 > 0,400 10.00 40 33,00 February transactions: Liquidation expenses paid 0 $ 5,900 14,000 $ 0 14.000 $ 0 8,400 $ 0 3.540 73,140 $ 0 198,500 $ 0 198,500 $ 1,770 98,670 $ 0 590 32,890 Safe payments to partners 0 $ 8,400 $ 73.140 $ 98,670 $ 32,890 March transactions: Sale of M&Eq. at a loss Liquidation expenses paid 0 155,400 4.400 $ 165,000 $ 157,200 $ 7,800 $ 198,500 0 0 0 25.860 2.640 44,640 $ $ es 12,930 1,320 84.420 $ 84,420 0 $ 4,310 440 28,140 28,140 8,400 $ 0 8,400 Payments to partners Balances at end of liquidation, March 31, 20X1 0 44.640 0 $ 0 $ 0 Chou 10% ABC PARTNERSHIP Schedule of Safe Payments to Partners Art Bru 60% 30% Schedule 1: January 31, 20X1 Capital balances $ 76,680 $ 109,090 $ Potential Loss on noncash assets 128,360 63,180 $ (49,680) $ 45,910 $ 80,030 21,060 58,970 ok ABC PARTNERSHIP Schedule of Safe Payments to Partners Art Bru Chou 60% 30% 10% Schedule 1: January 31, 20X1 Capital balances 76,680 $ 109,090 $ 80,030 Potential Loss on noncash assets 126,360 63,180 21,060 $ (49,680) $ 45,910 $ 58,970 Allocation of potential deficit 49,680 37,260 12,420 Safe payment, January 31, 20X1 $ 0 $ 8,650 $ + 46,550 ces Schedule 2: February 27, 20X1 Capital balances Potential Loss on noncash assets $ 73,140 $ 98,670 $ 32,890 $ 73,140 $ 98,670 $ 32,890 Allocation of potential deficit Safe payment, February 27, 20X1 $ 73,140 $ 98,670 $ 32,890