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 Noncash assets $ 60.ee 2e1,eee Liabilities Frick, capital (68x) Wilson, capital (285) Clarke, capital (286) Total liabilities and capital $ 43, 117.000 32.000 69 eee $261.ee Total assets Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business: 1. Distributed cash based on safe capital balances Immediately to the partners. Liquidation expenses of $9.000 are estimated as a basis for this computation 2. Sold noncash assets with a book value of $88,000 for $60.000. 3. Pald all liabilities. 4. Distributed cash based on safe capital balances again. 5. Sold remaining noncash assets for $48.000. 6. Pald actual liquidation expenses of $7.000 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. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation Required A Required B Required Prepare a predistribution plan for this partnership Frick, Capital $ 117.000 (98.000) 21,000 Wilson Capital $ 32.000 (32.000) 0 Clarke Capital $ 69.000 (32.000) 37.000 Beginning balances Loss Step one balances Loss Step two balances Loss Final balances 21,000 0 37.000 21,000 0 37.000 Required A Required B Required A Required B Required C 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.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Cash Cash Noncash Assets Liabilities Frick Capital (60%) $ 117,000 Wilson Capital 120% $ 32.000 Clarke, Capital 20%) $ 69,000 $ 60,000 $201.000 $ 43,000 $ 60.000 $ 201,000 $ 43,000 $117.000 $ 32.000 $ 69,000 $ 60.000 $ 201,000 $ 43,000 $ 117,000 $ 32.000 $ 60.000 $ 80,000 $201.000 $ 43,000 $ 117,000 $ 32.000 $ 69,000 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 $ 60,000 $ 201,000 $43.000 $ 117,000 $ 32,000 $ 69,000 $ 60,000 $ 201,000 $ 43,000 $117.000 $ 32.000 $ 69,000 $ $ 201,000 $43.000 $ 117,000 $ 32,000 $ 69,000 60,000 | 80,000 $ $ 201,000 $ 43,000 $ 117.000 $ 32.000 $ 69,000 Required A Required B Required Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (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 2 3 4 5 6 7 Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal Required A Required B Required Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (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 2 3 4 5 6 7 Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general Journal
