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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 $56,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash	$	52,000		Liabilities	$	192,000
Accounts receivable		82,000		Butler, loan		52,000
Office equipment (net)		72,000		Butler, capital (25%)		160,000
Building (net)		220,000		Osman, capital (25%)		52,000
Land		210,000		Ward, capital (50%)		180,000
Total assets	$	636,000		Total liabilities and capital	$	636,000

Prepare a predistribution plan for this partnership.

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 $31,000, the building for $166,000, and the land for $208,000.

3. Made safe capital distributions.

4. Paid all liabilities in full.

5. Paid actual liquidation expenses of $41,000 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 journal entry required" in the first account field.)

Osman, Capital Ward, Capital IS Beginning balances $ 52,000 Butler, Loan and Capital $ 212,000 52,000 $ 160,000 38,000 $ 122,000 52,000 $ Loss Step one balances Loss Step two balances 0 180,000 104,000 $ 76,000 76,000 $ 0 0 $ 0 No Transaction General Journal Debit Credit 1 Cash Butler, capital Osman, capital Ward, capital Accounts receivable 73,800 2,050 2,050 4,100 82,000 2 2 Cash 405,000 24,250 24,250 48,500 Butler, capital Osman, capital Ward, capital Office equipment Building Land 72,000 220,000 210,000 3 3 57,700 X 57,700 X Butler, capital Osman, capital Ward, capital Cash 115,400 x 230,800 57,700 X 4 4 52.000 X Butler, loan Liabilities X 192,000 4 4 Butler, loan x 52,000 X 192,000 X Liabilities Cash x 244,000 X 5 Butler, capital 10,250 10.250 Osman, capital Ward, capital Cash 20,500 41,000 6 6 65,750 X 42.250 X Butler, capital Osman, capital Ward, capital Cash 8,500 X 15,000 >