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 $38,000 are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash	$	34,000		Liabilities	$	174,000
Accounts receivable		64,000		Butler, loan		34,000
Office equipment (net)		54,000		Butler, capital (25%)		70,000
Building (net)		130,000		Osman, capital (25%)		34,000
Land		120,000		Ward, capital (50%)		90,000
Total assets	$	402,000		Total liabilities and capital	$	402,000

Prepare journal entries to record these liquidation transaction

Collected 90 percent of the accounts receivable and wrote the remainder off as uncollectible.

Sold the office equipment for $22,000, the building for $94,000, and the land for $136,000.

----Made safe capital distributions.

Paid all liabilities in full.

Paid actual liquidation expenses of $32,000 only.

Made final cash distributions to the partners.

-Made safe capital distributions.

Transaction	General Journal	Debit	Credit
3	Butler, loan	34,000
	Butler, capital	?
	Osman, capital	?
	Ward, capital	?
	Cash		131,600