Partners Maness and Joiner have decided to liquidate their business. The ledger shows the following account balances:

Cash$25,000

Accounts Payable$15,000

Inventory 120,000

Maness, Capital 65,000

Joiner, Capital 65,000

Maness and Joiner share profits and losses in an 8:2 ratio. During the first month of liquidation, half the inventory was sold for $40,000, and $10,000 of the accounts payable was paid. During the second month, the rest of the inventory was sold for $30,000, and the remaining accounts payable were paid. Cash was distributed at the end of each month, and the liquidation was completed at the end of the second month.

Required:

Prepare a statement of partnership realization and liquidation with a schedule of safe payments for the two-month liquidation period.

Check my work Prepare a statement or partnership rezation and liquidation with a schedule of sate payments for the two month liquidation period Joliner MANESS AND JOINER PARTNERSHIP Combined Statement of Realization and Schedule ot Sale Payments Capital Accounts CASH Inventory Maners Payable Balances Sale of inventory Payment to creditors $ 03 08 05 Os 0 Payments to partner (Schedule 1) 5 05 OS 0$ os 0 Sale o inventory Payment to creditors $ os 05 Ols 0 $ 0 Payments to partners Balances 5 0 $ 05 0 $ $ 0 signment 2 Saved Payment to creditors $ TA 0 $ 0 $ 0 $ 0 $ 0 Payments to partners (Schedule 1) $ 0 $ 0 $ 0 $ 0 $ 0 Sale of inventory Payment to creditors $ 0 $ 0 $ 0 $ 0 $ 0 Payments to partners Balances $ 0 $ 0 $ 0 $ 0 $ 0 MANESS AND JOINER PARTNERSHIP Schedule 1 Safe Payments at End of First Month Maness Joiner 80% 20% Capital balances Potential loss on remaining inventory Safe payments to partners $ 0 $ 0