The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its...

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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 $ 65,000 237,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) $ 42,000 141,000 38,000 81,000 Total assets $302,000 Total liabilities and capital $302,000 Part A Prepare a predistribution 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 $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $100,000 for $65,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $54,000. 6. Paid actual liquidation expenses of $6,000 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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. (Do not round intermediate calculations.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances 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 Frick, Wilson, Clarke, Cash $ 65,000 $ 57,000 Noncash Assets Liabilities Capital (60%) Capital Capital (20%) $ 237,000 (8,000) x $ 42,000 0 $ 141,000 $ 38,000 0 0 $ 237,000 $ 42,000 $ 141,000 $ 38,000 (20%) $ 81,000 (8,000) x $ 73,000 S 65,000 122,000 (42,000) (100,000) 0 (21,000) $ 137,000 $ 42,000 $ 120,000 0 (42,000) 0 $ 80,000 $ 137,000 $ 0 $ 120,000 (26,000) x 0 0 (36,000) 0 0 (3,000) x $ 15,000 54,000 $ 69,000 (6,000) 0 0 0 (27,000) (1.800) x $ 137,000 $ 0 $ 91,200 (137,000) 0 (49.800) $ 0 $ 0 $ 0 0 41,400 (3.600) $ 63,000 $ 0 $ 0 $ 37,800 (63,000) x 0 (37,800) S 0 $ 0 $ 0 $ 0 0 $ (7,000) $ 31,000 0 $31,000 $ 68,000 0 $ 68,000 0 (26,000) x 0 (600) x $ 30,400 (16,600) $ 13,800 (1,200) $ 12,600 (12,600) S (9,000) (600) x $ 30,400 (16,600) $ 13,800 (1,200) $ 12,600 (12,600) 0 (7,000) < Required A Required C > 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 $ 65,000 237,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) $ 42,000 141,000 38,000 81,000 Total assets $302,000 Total liabilities and capital $302,000 Part A Prepare a predistribution 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 $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $100,000 for $65,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $54,000. 6. Paid actual liquidation expenses of $6,000 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. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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. (Do not round intermediate calculations.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances 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 Frick, Wilson, Clarke, Cash $ 65,000 $ 57,000 Noncash Assets Liabilities Capital (60%) Capital Capital (20%) $ 237,000 (8,000) x $ 42,000 0 $ 141,000 $ 38,000 0 0 $ 237,000 $ 42,000 $ 141,000 $ 38,000 (20%) $ 81,000 (8,000) x $ 73,000 S 65,000 122,000 (42,000) (100,000) 0 (21,000) $ 137,000 $ 42,000 $ 120,000 0 (42,000) 0 $ 80,000 $ 137,000 $ 0 $ 120,000 (26,000) x 0 0 (36,000) 0 0 (3,000) x $ 15,000 54,000 $ 69,000 (6,000) 0 0 0 (27,000) (1.800) x $ 137,000 $ 0 $ 91,200 (137,000) 0 (49.800) $ 0 $ 0 $ 0 0 41,400 (3.600) $ 63,000 $ 0 $ 0 $ 37,800 (63,000) x 0 (37,800) S 0 $ 0 $ 0 $ 0 0 $ (7,000) $ 31,000 0 $31,000 $ 68,000 0 $ 68,000 0 (26,000) x 0 (600) x $ 30,400 (16,600) $ 13,800 (1,200) $ 12,600 (12,600) S (9,000) (600) x $ 30,400 (16,600) $ 13,800 (1,200) $ 12,600 (12,600) 0 (7,000) < Required A Required C >

Answer rating: 100% (QA)

To provide an accurate final statement of liquidation and the related journal entries corrections are necessary to address the errors Below Ill break ... View the full answer