The partnership of Rachel, Adams, and Nixon has the following trial balance on September 30, 20X9:

	Debit			Credit
Cash	$	20,000
Accounts Receivable (net)		30,000
Inventory		35,000
Plant and Equipment (net)		215,000
Accounts Payable					$	40,000
Rachel, Capital						120,000
Adams, Capital						90,000
Nixon, Capital						50,000
Total	$	300,000			$	300,000

The partners share profits and losses as follows: Rachel, 50 percent; Adams, 30 percent; and Nixon, 20 percent. The partners are considering an offer of $180,000 for the accounts receivable, inventory, and plant and equipment as of September 30. The $180,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated. The partners have decided to liquidate their partnership by installments instead of accepting the offer of $180,000. Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions follows:

October

$25,000 is collected on accounts receivable; balance is uncollectible.

$20,000 received for the entire inventory.

$1,500 liquidation expense paid.

$40,000 paid to creditors.

$10,000 cash retained in the business at the end of the month.

November

$2,000 in liquidation expenses paid.

As part payment of his capital, Nixon accepted an item of special equipment that he developed, which had a book value of $8,000. The partners agreed that a value of $12,000 should be placed on this item for liquidation purposes.

$4,000 cash retained in the business at the end of the month.

December

$150,000 received on sale of remaining plant and equipment.

$1,000 liquidation expenses paid. No cash retained in the business.

Required:

Prepare a statement of partnership realization and liquidation with supporting schedules of safe payments to partners.

Use Excel formulas to make or evidence each of your calculations of all dollar amounts. Do not enter any dollar amounts directly, unless it is unavoidable for obvious reasons. Use the tab function at the bottom of the Excel file to complete the assignment.