E 16-1	Simple Liquidation
The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet preppared
at this stage in their liquidation process is presented below:
Cash		40,000		Liabilities		25,000
Other Assets		50,000		Parks, Loan		10,000
				Cook, Capital		30,000
				Parks, Capital		10,000
				Argo, Capital		15,000
Total		90,000		Total		90,000
The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all
personally insolvent.
Required:
A) The Partners wish to distribute the $40,000 in cash. Record in journal entry from the distribution of
the available cash.
B) Record in journal entry from the completion of the liquidation process, assuming that the other assets
of $50,000 are sold for $15,000.