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Help plz Required information (The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago
Help plz
Required information (The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago 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 $48,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets $ 44,000 74,000 64,000 180,000 170,000 $ 532,000 Liabilities Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital $ 184,000 44,000 120,000 44,000 140,000 $ 532,000 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 $27,000, the building for $134,000, and the land for $176,000. 3. Distributed safe payments of cash. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $37,000 only. 6. Made final cash distributions to the partners. Prepare journal entries to record these liquidation transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) HE X 1 Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible. de 2 Sold the office equipment for $27,000, the building for $134,000, and the land for $176,000. 3 Distributed safe payments of cash. 4 Paid all liabilities in full. 5 Paid actual liquidation expenses of $37,000 only. 6 Made final cash distributions to the partners. Note : = journal entry has been entered Prepare a predistribution plan for this partnership Butler, Loan and Capital Osman, Capital Ward, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0Step by Step Solution
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