Craig, Joshi, and Meng decide to liquidate their partnership as of Dec. $31,$ Yr $10.$ The below trial balance provides information relating to Yr$10$ operations, and account balances prior to closing. Note that Joshi withdrew $$2,000$ from his partnership account on July $1,$ Yr $10.$

According to the partnership agreement, profits and losses are distributed as follows:

$-$Annual Salary Allowance: Craig $$40,000,$ Joshi $$40,000,$ and Meng $$20,000$

$-$Interest on Beginning Partners' Capital Account: $5\%$

$-$Remaining is allocated evenly to all partners

According to the partnership agreement, upon liquidation profits or losses are allocated:

Craig $40\%$

Joshi $40\%$

Meng $20\%$

Requirments:

$1.$ Calculate Net Income.

$2.$ Prepare a schedule showing the distribution of Yr $10$ net income.

$3.$ Prepare year$-$end journal entries to close the Yr $10$ net earnings to the partners and close Joshi's cash withdrawal.

$4.$ Calculate the partners' capital balances after the closing.

$5.$ Calculate the gain or loss on sell of non$-$cash assets.

$6.$ Enter the calculated partners' capital balances $($from step $4)$ into the Liquidation Schedule as well as the balances for Cash, Non$-$Cash Assets and liabilities $($see the trial balance$).$

$7.$ Prepare a liquidation schedule. Be sure to use the calculated partners' capital balances. Non$-$cash assets were sold for $$350,000.$

$8.$ Prepare the liquidation journal entries related to:

a$.$ Sell of non$-$cash assets on Jan $1$

b$.$ Distribution of gain or loss to partners on Jan $1$

c$.$ Payment of liabilities on Jan $4$

d$.$ Payment by partners $($if needed to bring account to zero from a negative balance$)$ on Jan $4$

e$.$ Distribute remaining cash to partners on Jan $6$