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 assets189,000. 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 predistribution plan for this partnership.

Beg Bal

Loss Schedule 1

Step one balance

Loss schedule 2

step 2 balance

Loss schedule 3

Step 3 balance

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 noncash 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.

PartC

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