Explain the third journal entry with calculations

Problem 10-33 Part A The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $49,000 are expected. The partnership balance sheet at the start of liquidation is as follows: $ 185,000 45,000 125,000 45, 000 145, 000 $ 545,000 Cash Accounts receivable 2$ Liabilities 45,000 75,000 65,000 185,000 175,000 Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital Office equipment (net) Building (net) Land $ 545,000 Total assets Prepare a predistribution plan for this partnership. The following transactions transpire in chronological order during the liquidation of the partnership: 1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. 2. Sold the office equipment for $27,500, the building for $138,000, and the land for $180,000. 3. Made safe capital distributions. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $37,500 only. 6. Made final cash distributions to the partners. Butler, loan 3 45,000 Butler, capital 91,000 11,000 Osman, capital Ward, capital 77,000 Cash 224,000