Part A

The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

Cash	$ 59,000	Liabilities	$ 57,000
Accounts receivable	126,000	Rodgers, loan	79,000
Inventory	145,000	Wingler, capital (30%)	186,000
Land	107,000	Norris, capital (10%)	132,000
Building and equipment (net)	190,000	Rodgers, capital (20%)	96,000
		Guthrie, capital (40%)	77,000
Total assets	$627,000	Total liabilities and capital	$627,000

When the liquidation commenced, expenses of $23,000 were anticipated as being necessary to dispose of all property.

Prepare a predistribution plan for this partnership. (Do not round intermediate calculations.)

	Wingler, Capital	Norris, Capital	Rodgers, Loan and Capital	Guthrie, Capital
Beginning balances
Loss
Step one balances	$	$	$	$
Loss
Step two balances	$	$	$	$
Loss
Step three balances	$	$	$	$

Part B

The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:

1.	Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible.
2.	Sold the land, building, and equipment for $156,000.
3.	Made safe capital distributions.
4.	Learned that Guthrie, who has become personally insolvent, will make no further contributions.
5.	Paid all liabilities.
6.	Sold all inventory for $81,000.
7.	Made safe capital distributions again.
8.	Paid liquidation expenses of $11,000.
9.	Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

Prepare journal entries to record these liquidation transactions.