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The partnership of Wing, Mehta, Rodgers, and Yan was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial

The partnership of Wing, Mehta, Rodgers, and Yan was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:
Cash $ 65,000 Liabilities $ 54,000
Accounts receivable 132,000 Rodgers, loan 85,000
Inventory 151,000 Wing, capital (30%)195,000
Land 110,000 Mehta, capital (10%)138,000
Building and equipment (net)193,000 Rodgers, capital (20%)99,000
Yan, capital (40%)80,000
Total assets $ 651,000 Total liabilities and capital $ 651,000
When the liquidation commenced, liquidation expenses of $20,000 were anticipated as being necessary to dispose of all property.
Required:
Part A
Prepare a predistribution plan for this partnership.
Part B
The following transactions transpire during the liquidation of the Wing, Mehta, Rodgers, and Yan partnership:
Collected 90 percent of the total accounts receivable with the rest judged to be uncollectible.
Sold the land, building, and equipment for $175,000.
Distributed safe payments of cash.
Learned that Yan, who has become personally insolvent, will make no further contributions.
Paid all liabilities.
Sold all inventory for $96,000.
Distributed safe payments of cash again.
Paid actual liquidation expenses of $14,000 only.
Made final cash disbursements to the partners based on the assumption that all partners other than Yan are personally solvent.
Prepare journal entries to record these liquidation transactions.

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