Required information [The following information applies to the questions displayed below.) 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 $46,000 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 $ 42,000 72,000 62,000 170,000 160,000 $ 506,000 Liabilities Butler, loan Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) Total liabilities and capital $ 182,000 42,000 110,000 42,000 130,000 $ 506,000 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 $26,000, the building for $126,000, and the land for $168,000 3. Made safe capital distributions. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $36,000 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 journe entry required" in the first account field.) Answer is complete but not entirely correct. IX X X OO 145,000 4 4 Liabilities 182,000 Cash 182,000 5 5 Butler, capital Osman, capital Ward, capital Cash OOO 9,000 9,000 18,000 36,000 6 6 Butler, capital Osman, capital Ward, capital Cash Ooo 2,300 $ 2.000 1.700 X X X 6.500 X