The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its...

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The partnership of Bauer, Ohtani, and Souza 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 assets Liabilities $ 66,000 231,000 Bauer, capital (60%) Ohtani, capital (20%) Souza, capital (20%) $ 46,000 135,000 37,000 79,000 Total assets $ 297,000 Total liabilities and capital $ 297,000 Required: Part A Prepare a predistribution plan for this partnership. Part B 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 $98,000 for $66,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Prepare 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. Part A Part B Part C Prepare a predistribution plan for this partnership. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Bauer, Capital Ohtani, Capital Souza, Capital < Part A Part B > Part A Part B Part C Prepare a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. BAUER, OHTANI, AND SOUZA Statement of Partnership Liquidation Final Balances Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances Final distribution based on ending capital account balances Ending balance Cash Noncash Assets Bauer, Liabilities Ohtani, Capital Souza, Capital Capital (60%) (20%) (20%) $ 66,000 $ 231,000 $ 46,000 $ 135,000 $ 37,000 $ 79,000 Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 A B C D E F G Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E F G Record the sale of noncash assets with a book value of $98,000 for $66,000. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E F G Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E F G Record the entry for cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E FL G Record the sale of the remaining noncash assets for $53,000. Note: Enter debits before credits. Transaction 5 General Journal Debit Credit Record entry Clear entry View general journal Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E Record the payment of liquidation expenses. Note: Enter debits before credits. Transaction 6 LL F G General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E LL F G Record the entry for final cash payments made to partners based on ending capital balances. Note: Enter debits before credits. Transaction 7 General Journal Debit Credit View general journal Record entry Clear entry The partnership of Bauer, Ohtani, and Souza 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 assets Liabilities $ 66,000 231,000 Bauer, capital (60%) Ohtani, capital (20%) Souza, capital (20%) $ 46,000 135,000 37,000 79,000 Total assets $ 297,000 Total liabilities and capital $ 297,000 Required: Part A Prepare a predistribution plan for this partnership. Part B 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 $98,000 for $66,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Prepare 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. Part A Part B Part C Prepare a predistribution plan for this partnership. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Bauer, Capital Ohtani, Capital Souza, Capital < Part A Part B > Part A Part B Part C Prepare a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. BAUER, OHTANI, AND SOUZA Statement of Partnership Liquidation Final Balances Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances Final distribution based on ending capital account balances Ending balance Cash Noncash Assets Bauer, Liabilities Ohtani, Capital Souza, Capital Capital (60%) (20%) (20%) $ 66,000 $ 231,000 $ 46,000 $ 135,000 $ 37,000 $ 79,000 Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 A B C D E F G Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E F G Record the sale of noncash assets with a book value of $98,000 for $66,000. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E F G Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E F G Record the entry for cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E FL G Record the sale of the remaining noncash assets for $53,000. Note: Enter debits before credits. Transaction 5 General Journal Debit Credit Record entry Clear entry View general journal Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E Record the payment of liquidation expenses. Note: Enter debits before credits. Transaction 6 LL F G General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: 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 < A B C D E LL F G Record the entry for final cash payments made to partners based on ending capital balances. Note: Enter debits before credits. Transaction 7 General Journal Debit Credit View general journal Record entry Clear entry

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To properly respond to the question follow these steps according to the provided data and rejection reason Part A Predistribution Plan 1 Calculate Los... View the full answer