INSTALLMENT LIQUIDATION

Assume that the following condensed Balance Sheet was prepared before the partners agreement to liquidate the partnership:

Assets		Liabilities & Equities
Cash	$ 10,000	Liabilities	$ 28,000
Non-Cash Assets	$100,000	Bruce, Capital (30%)	$ 34,000
		James, Capital (50%)	$ 30,000
	-----------	Ryan, Capital (20%)	$ 18,000
Total Assets	$110,000	Total Liabilities & Owners Equity	$110,000

The partners income -and loss- sharing percentage are stated in parentheses. The noncash assets were converted into cash over a period of time as follow:

	Sale Price	Book Value
Sale # 1	$20,000	$30,000
Sale # 2	$15,000	$25,000
Sale # 3	$10,000	$30,000
Sale # 4	$ 2,000	$10,000
Sale # 5	$ 0	$ 5,000

Cash will be distributed after each sale and payment of liabilities.

Required: 1. Prepare the appropriate schedules to liquidate the partnership under the following assumptions:

a.The firm is using Safe Payment Approach.

b.The firm is using Cash distribution Approach.

2. Journalize the above Transactions.