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

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 $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 C

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.)

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 Total assets $ 69,000 279,000 $348,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business: $ 40,000 168,000 45,000 95,000 $348,000 FRICK, WILSON, AND CLARKE Schedule of Partnership Liquidation Final Balances Frick, Noncash Cash Liabilities Capital Assets (60%) Beginning balances Distribution Updated balances Noncash assets sold Updated balances All liabilities are paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Paid liquidation expenses Updated balances Final distribution based on ending capital account balances Ending balance Wilson, Capital (20%) Clarke, Capital (20%) $69,000 $279,000 $40,000 $168,000 $45,000 $95,000 $69,000 $279,000 0 $40,000 $168,000 0 $45,000 $95,000 $40,000 $168,000 $45,000 $95,000 69,000 (114,000) $138,000 $165,000 (40,000) $138,000 $165,000 $0 $168,000 $45,000 $95,000 $138,000 $165,000 $0 $168,000 $45,000 $95,000 $138,000 $165,000 $0 $168,000 $45,000 $95,000 $138,000 $165,000 $0 $168,000 $45,000 $95,000 $138,000 $165,000 $0 $168,000 $45,000 $95,000 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 C 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.)