March, April, and May have been in partnership for a number of years. The partners allocate all profits and losses on a $2$:$3$:$1$ basis, respectively. Recently, each partner has become personally insolvent and, thus, the partners have decided to liquidate the business in hopes of remedying their personal financial problems. As of September $1,$ the partnership$$s balance sheet is as follows:

Anderson $(40\%$ of profits and losses$)..............$ Berry $(30\%).....................................$ Hammond $(20\%)................................$ Winwood $(10\%).................................$

$ $20,00012,000$

$(17,000)($deficit$)(25,000)($deficit$)$

Cash $.............................$ $ $11,000$ Accounts receivable. $...............84,000$ Inventory.......................... $74,000$ Land, building, and equipment $($net$)....38,000$

Total assets $.......................$ $$207,000$

Prepare journal entries for the following transactions:

a$.$ Sold all inventory for $$56,000$ cash.

b$.$ Paid $$7,500$ in liquidation expenses.

c$.$ Paid $$40,000$ of the partnership$$s liabilities.

Liabilities.................. March, capital. $.............$ April, capital $...............$ May, capital $...............$

Total liabilities and capital $...$

$ $61,00025,00075,00046,000$

$$207,000$

d$.$ Collected $$45,000$ of the accounts receivable.

e$.$ Distributed safe payments of cash; the partners anticipate no further liquidation expenses.

LO $15-7$

f$.$ Sold remaining accounts receivable for $30$ percent of face value.

g$.$ Sold land, building, and equipment for $$17,000.$

h$.$ Paid all remaining liabilities of the partnership.

i$.$ Distributed cash held by the business to the partners.