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 60,000

Noncash assets 219,000

Liabilities 40,000

Frick, capital (60%) 129,000

Wilson, capital (20%) 35,000

Clarke, capital (20%) 75,000

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 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

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.