Problem 15-33 (LO 15-2, 15-5)

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Complete the following questions by preparing worksheet and journal entries given below.

The partnership of Butler, Osman, and Ward was formed several years as a local tax preparation firm. Two partners have reached retirement age and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $42,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash	$	38,000		Liabilities	$	178,000
Accounts receivable		68,000		Butler, loan		38,000
Office equipment (net)		58,000		Butler, capital (25%)		90,000
Building (net)		150,000		Osman, capital (25%)		38,000
Land		140,000		Ward, capital (50%)		110,000
Total assets	$	454,000		Total liabilities and capital	$	454,000

rev: 10_29_2019_QC_CS-188028

Problem 15-33 Part B

The following transactions transpire in chronological order during the liquidation of the partnership:

1. Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible.

2. Sold the office equipment for $24,000, the building for $110,000, and the land for $152,000.

3. Made safe capital distributions.

4. Paid all liabilities in full.

5. Paid actual liquidation expenses of $34,000 only.

6. Made final cash distributions to the partners.

Prepare journal entries to record these liquidation transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)