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 S 53,000 Liabilities S 39,000 108,000 30,000 65,000 242,000 Cash Noncash assets Frick, hilson, Clarke, 189,000 capital (60%) capital (20%) capital (20%) Total assets $242,000 Total liabilities and capital 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 $84,000 for $53,000 3. Paid all liabilities 4. Distributed cash based on safe capital balances 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 based on safe capital balances 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 Complete this question by entering your answers in the tabs below Required A Required BRequired C Prepare a predistribution plan for this partnership Frick, Capital Wilson Capital larke Capital 108,000 S 30,000 $ 65,000 Beginning balances LoSs Step one balances Loss Step two balances LoSS Final balances 108,000 30,000 65,000 108,000 30,000 65,000 108,000 30,000 65,000 Required A Required BRequired C 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.) FRICK, WIL SON, AND CLARKE Statement of Partnership Liquidation Final Balances Frick Wilson, Clarke NoncashL Cash Liabilities Capial CapitalCapital Assets 60% (20% 20% Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances Final distribution based on ending capital account balances Ending balance 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000 5 53,000 189,000 S 39,000 108,000 30,000 65,000
