Please complete Part C journal entries 1-7

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets $ 64,000 261,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) $ 38,000 156,000 42,000 89,000 Total assets $325,000 Total liabilities and capital $325,000 Part A Prepare a predistribution plan for this partnership Answer is complete and correct. rect Wilson, Beginning balances Loss Step one balances Loss Step two balances Loss Step three balances Frick, Capital Capital $ 156,000 $ 42,000 (126,000) (42,000) 30,000 0 (30,000) 0 0 000 0 0 Clarke, Capital $ 89,000 (42,000) 47,000 (10,000) 37,000 (37,000) 0 Part B The following transactions occur in liquidating this business: 1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $108,000 for $64,000. 3. Paid all liabilities. 4. Distributed cash based on safe capital balances again. 5. Sold remaining noncash assets for $58,000. 6. Paid actual liquidation expenses of $6,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners based on safe capital balances. (Do not round intermediate calculations.) FRICK, WILSON, AND CLARKE Schedule of Partnership Liquidation Final Balances Cash Noncash Assets Liabilities Frick, Capital (60%) Wilson, Capital (20%) Clarke, Capital (20%) Beginning balances $261,000 $ 38,000 156,000 $ 42,000 $ 89,000 Distribution $ 64,000 18,000 $ 46,000 64,000 Updated balances $ 38,000 $261,000 108,000 000 26,400 120 800 Noncash assets sold 18,000 $ 71,000 8,800 $ 62,200 $ 42,000 8,800 $ 33,200 $ 153,000 $ Updated balances All liabilities are paid 38,000 38,000 0 Updated balances $ 153,000 $ 129 600 $ 33,200 First (remainder of first distribution) Next Next 110,000 38,000 $ 72,000 19,000 40,000 5,000 $ 8,000 58,000 $ 66,000 6,000 $ 60,000 60,000 $ 0 $ 0 $153.000 153,000 $ 0 Updated balances Noncash assets sold Updated balances Paid liquidation expenses Updated balances Final distribution based on ending capital account balances Ending balance $ 0 $ 62,200 19,000 10,000 1,000 $ 32.200 19,000 $ 13.200 1,200 $ 12,000 12,000 % 0 30,000 3,000 $ 96.600 57,000 $ 39,600 3,600 $ 36,000 36,000 % 0 1,000 $ 32.200 19,000 $ 13.200 1,200 $ 12,000 12,000 % 0 $ 0 $ 0 $ 0 $ 0 Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Record the entry for initial cash payments made to partners in accordance with predistribution plan. 2 Record the allocation of losses to partners on sale of noncash assets. 3 Record the extinguishment of all partnership liabilities. 4 Record the entry for cash payments made to partners in accordance with predistribution plan. 5 Record the allocation of losses to partners on sale of remaining noncash assets. 6 Record the payment of liquidation expenses. 7 Record the entry for final cash payments made to partners based on ending capital balances