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	$	65,000		Liabilities	$	42,000
Noncash assets		237,000		Frick, capital (60%)		141,000
				Wilson, capital (20%)		38,000
				Clarke, capital (20%)		81,000
Total assets	$	302,000		Total liabilities and capital	$	302,000

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 $100,000 for $65,000.
3. Paid all liabilities.
4. Distributed cash based on safe capital balances again.
5. Sold remaining noncash assets for $54,000.
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.

Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare a predistribution plan for this partnership Clarke, Capital Capital Capital Beginning balances Loss Step one balances Loss Step two balances Loss Final balances Required A Required B> Required A Required BRequired C e a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners based safe capital balances. (Do not round intermediate calculations RICK, WILSON, AND Statement of Partnership Liquidation Final Balances Noncash Assets Frick, Wilson, Clarke Liabilities Capital CapCapital Cash $ 65,000S 237,000 42,000$141,000 38,00081,000 Updated balances Noncash assets sold Liabilities paid Updated balances First (remainder of first distribution) Next Next Updated balances Noncash assets sold Updated balances Updated balances inal distribution based on ending capital account balances Ending balance Required A Required C > Required A Required BRequired C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits General Journal Credit Record entry Clear entry View general journal Required B Required C