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 $53,000 Liabilities $39,000 NonCash assets 189,000 Frick, capital (60%) 108,000 Wilson, capital (20%) 30,000 Clarke, capital (20%) 65,000. Total assets $242,000 Total liabilities and capital $242,000 Part A Prepare a pre-distribution 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 $7,000 are estimated as a basis for this computation. 2. Sold non-cash assets with a book value of $84,000 for $53,000. 3. Paid all liabilities.

4. Distributed safe payments of cash again.

5. Sold remaining noncash assets for $46,000.

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.

Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.