On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5 3 2, respectively, decide to liquidate their partnership The partnership trial balance at this date follows Debit Credit Cash $ 18,200 Accounts Receivable 66,500 Inventory 52,500 Machinery and Equipment (net) 189,500 Accounts Payable $ 53,200 Art, Capital 88,500 Bru, Capital 110,500 Chou, Capital 74,500 Total $ 326,700 $ 326,700 The partners plan a program of piecemeal conversion of assets to minimize liquidation losses All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month A summary of the liquidation transactions follows January 20X1 Collected $51,400 on accounts receivable the balance is uncollectible Received $38,300 for the entire inventory Paid $2,100 liquidation expenses Paid $51,200 to creditors, after offset of a $2,000 credit memorandum received on January 11, 20X1 Retained $10,200 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses February 20X1 Paid $4,100 liquidation expenses Retained $6,100 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses March 20X1 Received $146,400 on sale of all items of machinery and equipment Paid $5,100 liquidation expenses Retained no cash in the business Required Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners (Round your answers to nearest whole dollar ) ABC PARTNERSHIP Statement of Partnership Realization and Liquidation For the period from January 1, 20X1, through March 31, 20X1 Capital Balances Cash Other Assets Accounts Payable Art Bru Chou Balances before liquidation, January 1, 20X1 January transactions Collection of accounts receivable at a loss Sale of inventory at a loss Liquidation expenses paid Share of credit memorandum Payments to creditors Safe payments to partners February transactions Liquidation expenses paid Safe payments to partners March transactions Sale of M Eq at a loss Liquidation expenses paid Payments to partners Balances at end of liquidation, March 31, 20X1 ABC PARTNERSHIP Schedule of Safe Payments to Partners Art 50 Bru 30 Chou 20 Schedule 1 January 31, 20X1 Capital balances Potential Loss on noncash assets Allocation of potential deficit Safe payment, January 31, 20X1 Schedule 2 February 27, 20X1 Capital balances Potential Loss on noncash assets Allocation of potential deficit Safe payment, February 27, 20X1

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On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership.

On January 1, 20X1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows:

	Debit			Credit
Cash		$	18,200
Accounts Receivable			66,500
Inventory			52,500
Machinery and Equipment (net)			189,500
Accounts Payable					$	53,200
Art, Capital						88,500
Bru, Capital						110,500
Chou, Capital						74,500
Total		$	326,700		$	326,700

The partners plan a program of piecemeal conversion of assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: January 20X1

Collected $51,400 on accounts receivable; the balance is uncollectible.
Received $38,300 for the entire inventory.
Paid $2,100 liquidation expenses.
Paid $51,200 to creditors, after offset of a $2,000 credit memorandum received on January 11, 20X1.
Retained $10,200 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

February 20X1

Paid $4,100 liquidation expenses.
Retained $6,100 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

March 20X1

Received $146,400 on sale of all items of machinery and equipment.
Paid $5,100 liquidation expenses.
Retained no cash in the business.

Required: Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners. (Round your answers to nearest whole dollar.)

ABC PARTNERSHIP
Statement of Partnership Realization and Liquidation
For the period from January 1, 20X1, through March 31, 20X1
				Capital Balances
	Cash	Other Assets	Accounts Payable	Art	Bru	Chou
Balances before liquidation, January 1, 20X1
January transactions:
Collection of accounts receivable at a loss
Sale of inventory at a loss
Liquidation expenses paid
Share of credit memorandum
Payments to creditors

Safe payments to partners

February transactions:
Liquidation expenses paid

Safe payments to partners

March transactions:
Sale of M&Eq. at a loss
Liquidation expenses paid

Payments to partners
Balances at end of liquidation, March 31, 20X1

ABC PARTNERSHIP
Schedule of Safe Payments to Partners
	Art 50%	Bru 30%	Chou 20%
Schedule 1: January 31, 20X1
Capital balances
Potential Loss on noncash assets

Allocation of potential deficit
Safe payment, January 31, 20X1

Schedule 2: February 27, 20X1
Capital balances
Potential Loss on noncash assets

Allocation of potential deficit
Safe payment, February 27, 20X1