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 $ 63,000 255,000 Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20%) Total liabilities and capital $ 37,000 153,000 41,000 87,000 $318,000 Total assets $318,000 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 $7,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $106,000 for $63,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $57,000. 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. 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 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 Part 6 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 0 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 balances 0 0 0 0 0 0 Complete this question by entering your answers in the tabs below. Required A Required B Required C 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 Cash Noncash Assets Wilson, Clarke, Liabilities Frick, Capital Capital Capital (20%) $ 37,000 $ 153,000 $ 41,000 $ 87,000 (60%) (20%) $ 63,000 $ 255,000 $ 63,000 $ 255,000 $ 37,000 $ 153,000 $ 41,000 $ 87,000 $ 63,000 $ 255,000 $ 37,000 $ 153,000 $ 41,000 $ 87,000 $ 63,000 $ 255,000 $ 37,000 $ 153,000 $ 41,000 $ 87,000 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 $ 63,000 $ 255,000 $ 37,000 $ 153,000 $ 41.000 $ 87,000 $ 63,000 $ 255,000 $ 37,000 $ 153.000 $ 41,000 $ 87,000 $ 63,000 $ 255,000 $ 37,000 $ 153,000 $ 41,000 $ 87,000 $ 63,000 $ 255,000 $ 37,000 $ 153,000 $ 41,000 $ 87,000 Complete this question by entering your answers in the tabs below. Required a Required B Required C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 > Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal
