Please use the following template to record answes to questions below

FRICK, WILSON, AND CLARKE

Schedule of Partnership Liquidation

Final Balances

Beginning Balances:

Cash $60,000

Noncash Assets $219,000

Liabilities $40,000

Frick, Capital (60%) $129,000

Wilson, Capital (20%) $35,000

Clarke, Capital (20%) $75,000

Distribution of $4,000 (cash in excess of liabilities and estimated liquidation expenses) in accordance with pre-distribution plan

Updated balances

Noncash assets sold

Updated balances

All liabilities are paid

Updated balances

Distribution of $48,000 (cash in excess of liabilities and estimated liquidation expenses) in accordance with pre-distribution plan

First distribution

Next

Next

Updated balances

Noncash assets sold

Updated balances

Paid liquidation expenses

Updated balances

Final distribution based on ending capital account balances

Ending balance $-0- $-0- $-0- $-0- $-0- $-0

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 . . $ 60,000

Noncash assets . . 219,000

Total assets? .. $ 279,000

Liabilities . . $ 40,000

Frick, capital (60%) . . . 129,000

Wilson, capital (20% . . 35,000

Clarke, capital (20%) . 75,000

Total liabilities and capital? $ 279,000

Part A Prepare a predistribution plan for this partnership

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 $94,000 for $60,000. 3.Paid all liabilities. 4.Distributed cash based on safe capital balances again. 5.Sold remaining noncash assets for $51,000. 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.

Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Use template that follows to record your answers: