he partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

Cash	$	65,000	Liabilities	$	54,000
Accounts receivable		132,000	Rodgers, loan		85,000
Inventory		151,000	Wingler, capital (30%)		195,000
Land		110,000	Norris, capital (10%)		138,000
Building and equipment (net)		193,000	Rodgers, capital (20%)		99,000
			Guthrie, capital (40%)		80,000
Total assets	$	651,000	Total liabilities and capital	$	651,000

When the liquidation commenced, liquidation expenses of $20,000 were anticipated as being necessary to dispose of all property.

Part A

Prepare a predistribution plan for this partnership.

Part B

The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:

Collected 90 percent of the total accounts receivable with the rest judged to be uncollectible.

Sold the land, building, and equipment for $175,000.

Distributed safe payments of cash.

Learned that Guthrie, who has become personally insolvent, will make no further contributions.

Paid all liabilities.

Sold all inventory for $96,000.

Distributed safe payments of cash again.

Paid actual liquidation expenses of $14,000 only.

Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

Prepare journal entries to record these liquidation transactions.