The partnership of Frick, Wilson, and Clarke has elected to ceae all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:

Cash......................................................................$60,000

Noncash assets......................................................$219,000

Total assets...........................................................,$279,000

Liabilities................................................................$40,000

Frick, capital (60%).................................................$129,000

Wilson, capital (20%)..............................................$35,000

Clarke, capital (20%)..............................................$75,000

Total liabilities and capital.......................................$279,000

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 $8,000 are estimated as a basis for this computation.

2. Sold noncash assets with a book value of $94,000 for $60,000.

3. Paid all liabilities.

4. Distributed cash based on safe capital balances again.

5. Sold remaining noncash assets for $51,000.

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 based on safe capital balances.

Part C

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