Take Home Quiz 02 1. Foster and Carter have decided to terminate their partnership in March. In preperation for the closure, all revenue and expense accounts have already been closed. Foster and Carter all profits and losses on a 6:4 basis. The Balance sheet below represents the balances as of April 2019. Below are the journal entries to close out remianing balances. Required: Create The Liquidation Statement using beginning balances and journal enties below. Reference journal entries from handout #1 and also handouts 2 (pagel) for chapter 15. Foster and Carter Balance Sheet April 1, 2019 Assets Cash Acct. Receivable 50,000 15,000 30,000 Liabilities and Capital Liabilities 30,000 Foster, Capital 40,000 Carter, Capital 25,000 Inventory Journal Entries: 5/1 Cash 20,000 Foster, Capital (60% of loss) 6,000 Carter Capital (40% of loss) Inventory (record sale of inventory with a loss of $10,00) 30,000 5/15 Cash 10,000 Foster, Capital (60% of loss) 3,000 Carter Capital (40% of loss) 2,000 Accounts Receivable 15,000 (Record collection of accounts receivable with a write-off of 5,000 to bad debts) 6/1 Liabilities 30,000 Cash (Payment of outstanding liabilities) 30,000 6/15 Foster Capital 7,200 Carter, Capital 4,800 Cash 12.000 (Pyament of liquidation expenses with the amounts recorded as direct reductions to capital 6/30 Foster, Capital 23,800 Carter, Capital 14,200 Cash 38,000 (To record the distribution of cash to partners in accordance of final capital balances) Foster and Carter Statement of Partnership Liquidation Final Balances Non-Cash Assets Liabilities hows Cash Foster Capital Carter Capital