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		$	21,000
Accounts Receivable			73,500
Inventory			59,500
Machinery and Equipment (net)			196,500
Accounts Payable						$	56,000
Art, Capital							95,500
Bru, Capital							117,500
Chou, Capital							81,500
Total		$	350,500			$	350,500

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 $57,000 on accounts receivable; the balance is uncollectible.
2. Received $42,500 for the entire inventory.
3. Paid $3,500 liquidation expenses.
4. Paid $52,400 to creditors, after offset of a $3,600 credit memorandum received on January 11, 20X1.
5. Retained $13,000 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

February 20X1

6. Paid $5,500 liquidation expenses.
7. Retained $7,500 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses.

March 20X1

8. Received $153,000 on sale of all items of machinery and equipment.
9. Paid $6,500 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. (Round your answers to nearest whole dollar.)

On January 1, 20x1, partners Art, Bru, and Chou, who share profits and losses in the ratio of 5:32, respectively, decide to liquidate their partnership. The partnership trial balance at this date follows: Debit Credit Cash $ 21,000 Accounts Receivable 73,500 Inventory 59,500 Machinery and Equipment (net) 196,500 Accounts Payable $ 56,000 Art, Capital 95,500 Bru, Capital 117,500 Chou, Capital 81,500 Total $350,500 $350,500 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 $57,000 on accounts receivable: the balance is uncollectible. 2. Received $42.500 for the entire inventory. 3. Paid $3.500 liquidation expenses. 4. Paid $52,400 to creditors, after offset of a $3.600 credit memorandum received on January 11, 20x1. 5. Retained $13.000 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 20X1 6. Paid $5.500 liquidation expenses. 7. Retained $7.500 cash in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 20X1 8. Received $153.000 on sale of all items of machinery and equipment. 9. Paid $6.500 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. (Round your answers to nearest whole dollar.) March 20X1 8. Received $153.000 on sale of all items of machinery and equipment. 9. Paid $6,500 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. (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 Bru 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 0 $ 0 S 0 $ 0 $ 0 $ 0 Safe payments to partners $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 February transactions: Liquidation expenses paid $ 0 $ 0 S 0 $ 0 $ 0 $ 0 Safe payments to partners $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 March transactions: Sale of M&Eq. at a loss Liquidation expenses paid $ 0 $ 0 $ 0 $ 0 $ 0$ 0 Payments to partners Balances at end of liquidation, March 31, 20X1 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 ABC PARTNERSHIP Schedule of Safe Payments to Partners Art Bru 50% 30% Schedule 1: January 31, 20X1 Capital balances Potential Loss on noncash assets Chou 20% $ $ 0 $ 0 Allocation of potential deficit Safe payment, January 31, 20X1 $ 0 $ 0 $ 0 Schedule 2: February 27, 20X1 Capital balances Potential Loss on noncash assets $ 0 $ 0 $ 0 Allocation of potential deficit Safe payment, February 27, 20X1 $ o S 0 $ 0