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$76,000 Liabilities$44,000Noncash assets 303,000 Frick, capital (60%) 183,000 Wilson, capital (20%) 49,000 Clarke, capital (20%) 103,000Total assets$379,000 Total liabilities and capital$379,000

Part A

Prepare a predistribution plan for this partnership

Part B

The following transactions occur in liquidating this business:

Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $9,000 are estimated as a basis for this computation.

Sold noncash assets with a book value of $122,000 for $76,000.

Paid all liabilities.

Distributed cash based on safe capital balances again.

Sold remaining noncash assets for $65,000.

Paid actual liquidation expenses of $7,000 only.

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.