Required Information [The following information applies to the questions displayed below.] The partnership of Butler, Osman, and Ward was formed several years ago 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 $47,000 are expected. The partnership balance sheet at the start of liquidation is as follows: Cash Accounts receivable Office equipment (net) Building (net) Land Total assets Liabilities Butler, loan $ 43,000 73,000 63,000 $ 183,000 43,000 175,000 Butler, capital (25%) Osman, capital (25%) 115,000 43,000 165,000 Ward, capital (50%) 135,000 $ 519,000 Total liabilities and capital $ 519,000 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 $26,500, the building for $130,000, and the land for $172,000. 3. Distributed safe payments of cash. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $36,500 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.) Answer is complete but not entirely correct. No Transaction 1 1 Cash Butler, capital Osman, capital Ward, capital Accounts receivable 2 2 Cash 3 3 Butler, capital Osman, capital Ward, capital Office equipment (net) Building (net) Land Butler, loan Butler, capital Osman, capital Ward, capital Cash 4 4 Liabilities Cash 5 5 8 B Butler, capital Osman, capital Ward, capital Cash Butler, capital Osman, capital Ward, capital Cash General Journal 00000 0000000 00000 00 0000 0000 Debit 66,700 Credit 1,825 1.825 3,650 328,500 18.025 18.625 37,250 43.000 115,000x 43.000 135.000 x 73,000 63,000 175,000 165,000 336,000x 183,000 183,000 0,125 8.125 18.250 36,500 2.625 2.625 5,250 10,500