On January $1,$ the partners of Mori, Lux, and Khan $($who share profits and losses in the ratio of $5$:$3$:$2,$ respectively$)$ decide to terminate operations and liquidate their partnership. The trial balance at this date follows:

General Journal Debit Credit

Cash $ $28,000$

Accounts receivable $86,000$

Inventory $72,000$

Machinery and equipment, net $209,000$

Mori, loan $50,000$

Accounts payable $ $93,000$

Lux, loan $40,000$

Mori, capital $128,000$

Lux, capital $100,000$

Khan, capital $84,000$

Totals $ $445,000$ $ $445,000$

The partners plan a program of piecemeal conversion of the partnership$$s 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 Collected $$51,000$ of the accounts receivable; the balance is deemed uncollectible.

January Received $$48,000$ for the entire inventory.

January Paid $$4,000$ in liquidation expenses.

January Paid $$88,000$ to the outside creditors after offsetting a $$5,000$ credit memorandum received by the partnership on January $11.$

January Retained $$20,000$ cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners.

February Paid $$5,000$ in liquidation expenses.

February Retained $$8,000$ cash in the business at the end of the month to cover additional liquidation expenses.

March Received $$156,000$ on the sale of all machinery and equipment.

March Paid $$7,000$ in final liquidation expenses.

March Retained no cash in the business.

Required:

Prepare proposed schedules of liquidation on January $31,$ February $28,$ and March $31$ to determine the safe payments made to the partners at the end of each of these three months.Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January.

Note: Amounts to be deducted should be entered with a minus sign.Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of February.

Note: Amounts to be deducted should be entered with a minus sign.

$\backslash$table$[[$MORI$,$ LUX, AND KHAN PARTNERSHIP$],[$Proposed Schedule of Liquidation$],[$February $28],[,$Cash,,$\backslash$table$[[$Noncash$],[$Assets$]],$Liabilities,$\backslash$table$[[$Mori$,$ Capital$],[$and Loan $50\%]],\backslash$table$[[$Lux$,$ Capital$],[$and Loan$],[30\%]],\backslash$table$[[$Khan$,$ Capital$],[20\%]]],[$Balances before January $31$ safe payments,$$,0,,,,,],[$Safe payments to partners $-$ January $31,,0,,,,,],[$Balances $-$ February $1,,0,0,0,0,0,0],[$Paid liquidation expenses,,$0,0,,,,],[$Subtotal $($actual balances$),,0,0,0,0,0,0],[$Maximum loss on assets,,$0,,,,,],[$Maximum liquidation expenses,,,,,,,$],[$Subtotal $($potential balances$),,0,0,0,0,0,0],[$Allocation of deficit capital balance,,,,,,,$],[$Safe payments to partners $-$ February $28,$$$,\backslash$table$[[0,$$$],[$n$,]],0,$$$,$$$,$$$,$$$]]$