Q.12

on, 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 $. 64,000 249,000 Liabilities Priek, capital (608) Wilson, capital (208) Clarke, capital (204) Total liabilities and capital $ 38,000 150,000 40,000 B5,000 $313,000 Total assets $313.000 Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation 2. Soid noncash assets with a book value of $104,000 for $64,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again, 5. Sold remaining noncash assets for $56,000. 6. Pald actual liquidation expenses of $8,000 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 Part Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation Complete this question by entering your answers in the tabs below. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $104,000 for $64,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $56,000. 6. Paid actual liquidation expenses of $8.000 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. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. es Complete this question by entering your answers in the tabs below. Required A Required B Required Prepare a predistribution plan for this partnership. Frick, Capital Wilson, Capital Clarke, Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Complete this question by entering your answers in the tabs below. Check my work Required A Required B Required Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not found intermediate calculations.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Noncash Cash Wilson, Frick, Capital Clarke Assets Liabilities (60%) Capital Gapital (20%) (20%) Beginning balances $ 64,000 $ 249,000$ 38,000 $ 150,000 340,000 $ 85,000 Distribution Updated balances Noncash assets sold Updated balances Labios pais Updated balances First remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balancen Final distribution based on anding capital count balances Ending balance Required A Required B Required 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the entry for Initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal Required A Required B Required 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.) View transaction list Journal entry worksheet es Record the allocation of losses to partners on sale of noncash assets. Note: Enter debits before credits General Journal Transaction 2 Debit Credit Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required A Required B Required 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.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 Record the extinguishment of all partnership liabilities. Note: Enter debits before credits Transaction 3 General Journal Dobit Credit Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required A Required B Required 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.) View transaction list Journal entry worksheet Record the entry for cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Complete this question by entering your answers in the tabs below. Required A Required B Required 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.) View transaction list Journal entry worksheet