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	$	71,000		Liabilities	$	39,000
Noncash assets		291,000		Frick, capital (60%)		177,000
				Wilson, capital (20%)		47,000
				Clarke, capital (20%)		99,000
Total assets	$	362,000		Total liabilities and capital	$	362,000

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 $9,000 are estimated as a basis for this computation.
2. Sold noncash assets with a book value of $118,000 for $71,000.
3. Paid all liabilities.
4. Distributed safe payments of cash again.
5. Sold remaining noncash assets for $63,000.
6. Paid actual liquidation expenses of $7,000 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.