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On January 1, 20X1. partners Art Bru, and Chou, who share profits and losses in the ratio of 6:31. respectively, decide to liquidate their partnership.

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On January 1, 20X1. partners Art Bru, and Chou, who share profits and losses in the ratio of 6:31. respectively, decide to liquidate their partnership. The partnership trial balance at this date follow Credit Debit $ 21,000 75,500 61,500 195,500 Cash Accounts Receivable Inventory Machinery and Equipment (net) Accounts Payable Art, Capital Bru, Capital Chou, Capital Total 55.000 97,500 119,500 13500 5357,300 $357,300 ce 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 $58,500 on accounts receivable; the balance is uncollectible. 2. Received $43,500 for the entire inventory 3. Pald $3,900 liquidation expenses 4 Paid $52.600 to creditors, after offset of a $4,200 credit memorandum received on January 11, 20x1 5. Retained $12300 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses February 20X1 6. Paid $5.900 liquidation expenses 7. Retained $6.200 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses March 20X1 8. Received $155,400 on sale of all items of machinery and equipment 9 Paid $4,400 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 (Round your answers to nearest whole dollar.) 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 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 Sate payments to partners February transactions Liquidation expenses paid Safe payments to partners March transactions Sale of M&E, at a loss Liquidation expenses paid Payments to partners Balances at end of liquidation, March 31, 20X1 Chou 10% ABC PARTNERSHIP Schedule of Safe Payments to Partners All Bru 001 30% Schedule 1. January 31, 20X1 Captat balances Potential Losses and Expenses

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