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		$	22,000
Accounts Receivable			76,000
Inventory			62,000
Machinery and Equipment (net)			199,000
Accounts Payable						$	57,000
Art, Capital							98,000
Bru, Capital							120,000
Chou, Capital							84,000
Total		$	359,000			$	359,000

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 $59,000 on accounts receivable; the balance is uncollectible.
2. Received $44,000 for the entire inventory.
3. Paid $4,000 liquidation expenses.
4. Paid $52,500 to creditors, after offset of a $4,500 credit memorandum received on January 11, 20X1.
5. Retained $11,000 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

February 20X1

6. Paid $6,000 liquidation expenses.
7. Retained $5,000 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

March 20X1

8. Received $156,000 on sale of all items of machinery and equipment.
9. Paid $4,500 liquidation 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.