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 Noncash assets $ 60,000 201,000 Liabilities Frick, capital (604) Wilson, capital (204) Clarke, capital (20) Total liabilities and capital $ 43,000 117,000 32,000 69,000 $261,000 Total assets $261,000 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 $88,000 for $60,000 3. Pald all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $48,000. 6. Pald 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 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. Frick, Capital Wilson, Capital Clarke, Capital 0 Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three Valances 0 0 0 (Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not round Intermediate calculations.) FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Noncash Cash Wilson, Frick, Capital Clarko Assets Liabilities Capital (60%) Capital (20%) (20%) Beginning balances $ 60,000 $201.000 $ 43,000 $ 117,000 $ 32.000 $ 69,000 Distribution Updated balances $ 60,000 $ 201,000 $ 43,000 $ 117,000 $ 32,000 $ 69,000 Noncash assets sold Updated balances $ 60,000 $ 201,000 $ 43,000 $ 117,000 $ 32,000 $ 69,000 Liabilities paid Updated balances $ 60,000 $ 201,000 $ 43,000 $ 117.000 $ 32,000 $ 69,000 First (remainder of first distribution) Next Next Updated balances $ 60,000 $ 201,000 $ 43,000 $ 117.000 $ 32,000 $ 69,000 Noncash assets sold Updated balances $ 60,000 $ 201,000 $ 43,000 $ 117,000 $ 32,000 $ 69,000 Liquidation expenses paid Updated balances $ 60,000 $ 201,000 $ 43,000 $ 117,000 $ 32,000 $ 69,000 Final distribution based on ending capital account balances Ending balance $ 60,000 $ 201,000 $ 43,000 $ 117,000 $ 32,000 $ 69,000
