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 Total assets $ 65,000 237,000 $302,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Liabilities Frick, capital (60%) Wilson, capital (20%) Clarke, capital (20 %) Total liabilities and capital 2. Sold noncash assets with a book value of $100,000 for $65,000. 3. Paid all liabilities. 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation. 4. Distributed safe payments of cash 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. Complete this question by entering your answers in the tabs below. Required A Required B 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. Beginning balances Assumed loss of Schedule 1 Prepare a predistribution plan for this partnership. Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Required C Frick, Capital 0 0 0 Wilson, Capital 0 0 0 Complete this question by entering your answers in the tabs below. Required A Required B 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.) Beginning balances Distribution Updated balances Noncash assets sold Updated balances Liabilities paid Updated balances Required C First (remainder of first distribution) Next Next FRICK, WILSON, AND CLARKE Statement of Partnership Liquidation Final Balances Updated balances Noncash assets sold Updated balances Liquidation expenses paid Updated balances Final distribution based on ending capital account balances Ending balance $ $ Cash 65,000 $ Noncash Assets $ 237,000 $ 65,000 $ 237,000 $ 42,000 $ 65,000 $ 237,000 $ 65,000 $ 237,000 Liabilities Frick, Capital (60%) 65,000 $ 237,000 $ 42,000 $ $ 42,000 $ 141,000 $ 65,000 $ 237,000 141,000 Wilson, Capital (20%) Clarke, Capital (20%) $ 38,000 $ 81,000 $ 38,000 $ 81,000 141,000 $ 38,000 $ 81,000 141,000 $ 38,000 $ 81,000 $ 65,000 $ 237,000 $ 42,000 $ 141,000 141,000 $ 38,000 $ 81,000 141,000 S 38,000 $ 81,000 141,000 $ 38,000 $81,000 141,000 $ 38,000 $81,000 Complete this question by entering your answers in the tabs below. Required A Required B Required 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 >
