The partnership of Frick, Wilson, and Clarke 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	$ 69,000		Liabilities	$ 40,000
Noncash assets	279,000		Frick, capital (60%)	168,000
			Wilson, capital (20%)	45,000
			Clarke, capital (20%)	95,000
Total assets	$348,000		Total liabilities and capital	$348,000

Part A

The following transactions occur in liquidating this business:

1.	Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $7,000 are estimated as a basis for this computation.
2.	Sold noncash assets with a book value of $114,000 for $69,000.
3.	Paid all liabilities.
4.	Distributed cash based on safe capital balances again.
5.	Sold remaining noncash assets for $61,000.
6.	Paid actual liquidation expenses of $5,000 only.
7.	Distributed remaining cash to the partners and closed the financial records of the business permanently.

Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners based on safe capital balances. (Do not round intermediate calculations.)

Part B: PREPARE JOURNAL ENTRIES:

1. Record the entry for initial cash payments made to partners in accordance with predistribution plan.

2. Record the allocation of losses to partners on sale of noncash assets.

3. Record the extinguishment of all partnership liabilities.

4. Record the entry for cash payments made to partners in accordance with predistribution plan.

5. Record the allocation of losses to partners on sale of remaining noncash assets.

6. Record the payment of liquidation expenses.

7. Record the entry for final cash payments made to partners based on ending capital balances.