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 $ 19,400 Accounts Receivable 69,500 Inventory 55,508 Machinery and Equipment (net) 192,500 Accounts Payable $ 54,400 Art, Capital 91,500 Bru, Capital 113,508 Chou, Capital 77,500 Total $ 336,900 $ 336,900 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 1. Collected $53,800 on accounts receivable; the balance is uncollectible. 2. Received $40,100 for the entire inventory. 3. Paid $2,700 liguidation expenses. 4. Paid $51,600 to creditors, after offset of a $2,800 credit memorandum received on January 11, 20X1. 5. Retained $11,400 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 20X1 6. Paid $4,700 liquidation expenses. 7. Retained $6,700 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 20X1 8. Received $148,800 on sale of all items of machinery and equipment. 9. Paid $5,700 liguidation expenses. 10. Retained no cash in the business. Required: Prepare a statement of partnership liquidation for the partnership with schedules of safe payments to partners. Note: 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 0 5 0 S 0 0 0 S Safe payments to partners 0 CA 0 0 0 $ February transactions: Liquidation expenses paid $ 0 0 0 0 CA O S Safe payments to partners 0 0 S O S 0 $ March transactions. Sale of Machinery and Equipment at a loss Liquidation expenses paid 0 $ 0 S 0 $ Payments to partners Balances at end of liquidation, March 31, 20X1 $ CA 0 0 $ 0 $ 0ABC PARTNERSHIP Schedule of Safe Payments to Partners Art Bru Chou 50% 30% 20% Schedule 1: January 31, 20X1 Capital balances Potential Losses and Expenses 0 0 0 Allocation of potential deficit Safe payment, January 31, 20X1 0 0 0 Schedule 2: February 27, 20X1 Capital balances Potential Losses and Expenses 0 5 0 0 Allocation of potential deficit Safe payment, February 27, 20X1 S 0 0 S 0