PLEASE ASSIST IN CORRECTING ERRORS

Problem 10-29 (Algo) (LO 10-6) On January 1, the partners of Van, Bakel, and Cox (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: Credit Debit $ 29,000 88, eee 74, eee 211, eee 52, eee Cash Accounts receivable Inventory Machinery and equipment, net Van, loan Accounts payable Bakel, loan Van, capital Bakel, capital Cox, capital Totals $ 97, eee 42, eee 129, eee 101, eee 85, eee $ 454, eee $ 454, eee The partners plan a program of plecemeal 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 $62,000 of the accounts receivable; the balance is deemed uncollectible. Received $49,000 for the entire inventory. Paid $5, eee in liquidation expenses. Paid $91,eee to the outside creditors after offsetting a $6,000 credit memorandum received by the partnership on January 11. Retained $21,000 cash in the busine the end of January cover liquidation expenses. The remainder is distributed to the partners. February Paid $6,eee in liquidation expenses. Retained $9,000 cash in the business at the end of the month to cover additional liquidation expenses. March Received $157,000 on the sale of all machinery and equipment. Paid $8,eee in final liquidation expenses. Retained no cash in the business. 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. January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January. (Amounts to be deducted should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation January 31 Van, Bakel, Capital Capital Cox, Cash Noncash Liabilities and and Assets Capital Loan Loan 20% 50% 30% Balances - January 1 $ 29,000 S 373,000 97,000 77,000 143,000 85,000 Collected accounts receivable 62.000 (88,000) 0 (13,000) (7,800) (5,200) Sold inventory 49,000 (74,000) (12,500) (7,500) (5,000) Paid liquidation expenses (5,000) 0 (2,500) (1.500) (1,000) Paid accounts payable (91,000) (97,000) 3,000 1,800 1,200 Subtotal (actual balances) 44,000 211,000 0 52,000 128,000 75,000 Maximum loss on assets S (211,000) S (105,500) (63,300) (42 200) Maximum liquidation expenses (21,000) 0 (10.500) (6,300) (4.200) Subtotal (potential balances) 23,000 0 (64,000) 58,400 28,600 Allocation of deficit capital balance 64,000 0 0 X Safe payments to partners - January $ 23,000 0 S 0 31 $ 58,400 $ 28,600 0 OOO 0 0 0 0 0 0 IS 0 0 0 0 IS January February > January February March IS 0 Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of February. (Amounts to be deducted should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation February 28 Van, Bakel, Cox, Cash Noncash Capital Liabilities Capital Assets and Loan and Loan Capital 20% 50% 30% Balances before January 31 safe S 44,000 S 211,000 $ 127,500 $ 124,400 S 72,600 payments Safe payments to partners - January 0 0 0 0 0 31 Balances - February 1 44,000 211,000 127,500 124,400 72,600 Paid liquidation expenses (6,000) 0 0 (3.000) (1,800) (1,200) Subtotal (actual balances) 38,000 211,000 0 124,500 122,600 71,400 Maximum loss on assets 0 (211.000) (105,500) (63,300) (42 200) Maximum liquidation expenses (9,000) 0 0 (4,500) (2,700) (1.800) Subtotal (potential balances) 29,000 0 14,500 56,600 27,400 Allocation of deficit capital balance 0 0 X 0 x Safe payments to partners - February 29,000 S 0 0 14,500 56,600 S 28 27,400 0 0 > 0 0 0 0 0 IS IS IS January February March Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of March. (Amounts to be deducted should be entered with a minus sign.) VAN, BAKEL, AND COX PARTNERSHIP Proposed Schedule of Liquidation March 31 Van, Noncash Capital Bakel, Cox, Cash Liabilities and Assets Capital and Capital Loan Loan 30% 20% 50% Balances before February 28 safe $ 211,000 S 0 S payments 0 XS Safe payments to partners - February 28 0 0 0 X 0 X Balances - March 1 0 211,000 0 0 0 0 Sold machinery 157,000 (211,000) 0 (27,000) (16,200) (10,800) Paid liquidation expenses (8,000) 0 (4,000) (2,400) (1.600) Subtotal (actual balances) 149,000 0 0 (31,000) (18,600) (12,400) Safe payments to partners - March 31 0 0 0 S S Ending balances - March 31 S 0 S (31.000) $ (18,600) 149,000 $ (12,400) IS 0 0 0 0 0 0 0 0 0 0