Q.12

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 anset $ 64,000 249,000 Liabilities Trick, capital (605) Wilson, capital (201) Clarke, capital (201) Total liabilities and capital $ 38,000 150,000 40,000 85,000 $313,000 Total assets $313,000 Part A Prepare a predistribution plan for this partnership, Part 8 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. 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 3. Pald all liabilities. 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. 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. 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 0 0 0 Beginning balances Assumed loss of Schedule 1 Stop one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances 0 0 0 0 0 0 > KA Required B Check my werk 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 round Intermediate calculations.) FRICK WILSON AND CLARKE Statement of Partnership Liquidation Final Balances Noncash Wilson, Clarke, Cash Frick Capital Assets Liabilities (50%) Capital Capital (20%) (20%) Beginning balances $ 64.000 $ 249,000 $ 38,000 $ 150,000 $ 40,000 $ 85.000 Distribution Updated balances $ 64000 $ 249,000 5 38,000 $ 150,000 $ 40,000 $85.000 Noncash assets sold Updated balances $ 64,000 $ 249.000 $ 38,000 $ 150,000 $ 40.000 $ 35.000 Liabilities paid Updated balances $ 64,000 $ 249,000 $38.000 $ 150.000 $ 40,000 $ 85,000 FirstCremainder of fint distribution) Next Next Updated balances $ 64,000 $ 249,000$ 38,000 $150,000 $ 40,000 $85.000 No cash assets sold Updated balances $ 64.000 $ 249,000 5 38.000 $ 150,000 $40.000 $ 35.000 Liquidation expenses paid Updated balances $ 64,000 $ 240,000 $ 38,000 $ 150,000 $40,000 $85.000 Final distribution based on ending capital account balances Ending balance $ 64,000 $ 249,000 $30,000 $150,000 $40.000 $ 85.000 egured A Required> Checy WOL 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 5 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 Journal Entries . . . Record the entry for initial cash payments made to partners in accordance with predistribution plan. Record the allocation of losses to partners on sale of noncash assets. Record the extinguishment of all partnership liabilities. Record the entry for cash payments made to partners in accordance with predistribution plan. Record the allocation of losses to partners on sale of remaining noncash assets. Record the payment of liquidation expenses. Record the entry for final cash payments made to partners based on ending capital balances