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 $ 66,000 231,eee Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital $ 46,eee 135, eee 37, see 79, eee $297, eee Total assets $297,800 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 $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $98,000 for $66,000. 3. Pald all liabilities 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Pald actual liquidation expenses of $8,000 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. Complete this question by entering your answers in the tabs below. Required a Required B Required Prepare a predistribution plan for this partnership. Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Frick, Wilson, Clarke, Capital Capital Capital $ 135,000 $ 37,000 $ 79.000 (111.000) (37,000) (37.000) 24,000 0 42.000 (24.000) (8,000) 0 0 34.000 0 0 (34,000) 0 0 0 Required A Required B Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10.000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $98.000 for $66.000. 3. Paid all liabilities 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Paid actual liquidation expenses of $8,000 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 Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Required A Required B Required 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 Wilson, Clarke, Noncash Cash Liabilities Frick, Capital Capital (60%) Assets Capital (20%) (20%) Beginning balances $ 68,000 $ 231,000 $ 48,000 S 135,000 $ 37,000 $ 79,000 Distribution (10.000) (10,000) Updated balances $ 58,000 $ 231,000 $ 48.000 $ 135,000 $ 37,000 $ 69,000 Noncash assets sold 68,000 Updated balances $ 122,000 $ 231,000 $ 48.000 $ 135,000 $ 37,000 $ 69,000 Liabilities paid Updated balances $ 122.000 $ 231,000 $48.000 $ 135,000 $ 37,000 $ 69,000 First (remainder of first distribution) Next Next $ 122,000 $ 231,000 $48.000 $ 135,000 $ 37,000 $ 69,000 $ 122,000 $ 231,000 $48.000 $ 135,000 S 37,000 $ 69,000 Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances Final distribution based on ending capital account balances Ending balance $ 122,000 $ 231,000 $ 48,000 $ 135,000 S 37,000 $ 69,000 $ 122,000 $ 231,000 $40,000 $ 135,000 S 37,000 $ 69,000 Port B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10.000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $98,000 for $66.000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Paid actual liquidation expenses of $8.000 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. Complete this question by entering your answers in the tabs below. 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 > Record the entry for initial cash payments made to partners in accordance with predistribution plan. ance with 2 Record the allocation of losses to partners on sale of noncash assets. Record the extinguishment of all partnership liabilities. 3 1 4 Credit 5 Record the entry for cash payments made to partners in accordance with predistribution plan. Record the allocation of losses to partners on sale of remaining noncash assets. 6 Record the payment of liquidation expenses. = journal entry has been entered Note : Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. 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 2 Record the allocation of losses to partners on sale of > noncash assets. ance with 3 Record the extinguishment of all partnership liabilities. 4 Record the entry for cash payments made to partners in accordance with predistribution plan. 5 Record the allocation of losses to partners on sale of remaining noncash assets. Credit 6 Record the payment of liquidation expenses. 7 Record the entry for final cash payments made to partners based on ending capital balances. Note : = journal entry has been entered Record entry Clear entry View general journal