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 $51,000 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 $ 47,000 77,000 Liabilities Butler, loan $ 187,000 47,000 67,000 195,000 185,000 $ 571,000 Butler, capital (25%) Osman, capital (25%) Ward, capital (50%) 135,000 47,000 155,000 Total liabilities and capital $ 571,000 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 $28,500, the building for $146,000, and the land for $188,000. 3. Distributed safe payments of cash. 4. Paid all liabilities in full. 5. Paid actual liquidation expenses of $38,500 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.) 1 1 Cash Butler, capital 69,300 1,925 Osman, capital 1,925 Ward, capital 3,850 Accounts receivable 77,000 2 2 Cash 362,500 Butler, capital 21,125 Osman, capital 21,125 Ward, capital 42,250 Office equipment (net) 67,000 Building (net) 195,000 Land 185,000 3 3 Butler, loan Butler, capital Osman, capital Ward, capital Cash 47,000 47,000 47,000 94,000 240,800