Joe, Jim, and Jay have been partners for several years. The partners allocate all profits and losses on a 4:4:2 basis, respectively. Now, each partner has become personally insolvent and, the three partners have decided to liquidate the business in hopes of solving their personal financial issues. As of September 1, the partnership's balance sheet is as follows:

Assets

Liabilities and Capital

Cash

$ 35,000

Liabilities

$ 131,000

Accounts receivable

132,000

Joe, capital

60,000

Inventory

122,000

Jim, capital

99,000

Land, building, and equipment (net)

71,000

Jay, capital

70,000

Total assets

$ 360,000

Total liabilities and capital

$ 360,000

Required:

Prepare journal entries for the following transactions (if no entry is required for a transaction/ event, indicate "No journal entry required"):

1.Sold all inventory for $80,000 cash (1 point).

2.Paid $14,700 in liquidation expenses (1 point).

3.Paid $64,000 of the partnership's liabilities (1 point).

4.Collected $84,000 of the accounts receivable (1 point).

5.Distributed safe cash balances; the partners anticipate no further liquidation expenses (5 points).

6.Sold remaining accounts receivable for 35 percent of face value (2 points).

7.Sold land, building, and equipment for $41,000 (1 point).

8.Paid all remaining liabilities of the partnership (1 point).

9.Distributed cash held by the business to the partners (2 points).