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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

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:

Debit Credit
Cash $ 38,000
Accounts receivable 106,000
Inventory 92,000
Machinery and equipment, net 229,000
Mori, loan 70,000
Accounts payable $ 91,000
Lux, loan 60,000
Mori, capital 180,000
Lux, capital 110,000
Khan, capital 94,000
Totals $ 535,000 $ 535,000

The partners plan a program of piecemeal conversion of the partnerships 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 $71,000 of the accounts receivable; the balance is deemed uncollectible.
January Received $58,000 for the entire inventory.
January Paid $6,000 in liquidation expenses.
January Paid $84,000 to the outside creditors after offsetting a $7,000 credit memorandum received by the partnership on January 11.
January Retained $30,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners.
February Paid $7,000 in liquidation expenses.
February Retained $18,000 cash in the business at the end of the month to cover additional liquidation expenses.
March Received $166,000 on the sale of all machinery and equipment.
March Paid $9,000 in final liquidation expenses.
March Retained no cash in the business.
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January Collected 5%1,000 of the accounts receivable; the balance is deened uncollectible. Recelved 558 , eb0 for the entire inventory. Paid 56,000 in liquidation expenses. Pald $84,000 to the outside creditors after affsetting a $7,000 credit mehorandun received by the partnership on January 11. Retained 530 , eee cash in the business at the end of January to cover jlquidation expenses, The renalnder is alstributed to the parthers. Fervary pald $7,000 in liquidation expenses. expenses. Paid $9,009 in tinal irauldation expenses. inetained no cash in the bustoess. Required: Prepare ptoposed schediles of liquidation on January 31 , February 2.8 , and March 31 to determine the sate payments made to the partners at the end of each of these three months. Complete this question ty entering your answers in the tabs below. prepare proposed schedule of liquidation to determine the safe payments made to the partners at the ead of January. hoter Amounte to be dedocted stobula be entered with a minus sian

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