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$ $57,000$

Liabilities$ $58,000$

Accounts receivable$124,000$

Rodgers, loan$77,000$

Inventory$143,000$

Wing, capital $(30\%)183,000$

Land$106,000$

Mehta, capital $(10\%)130,000$

Building and equipment $($net$)189,000$

Rodgers, capital $(20\%)95,000$

Yan, capital $(40\%)76,000$

Total assets$ $619,000$

Total liabilities and capital$ $619,000$

When the liquidation commenced, liquidation expenses of $$23,000$ were anticipated as being necessary to dispose of all property.

Required:Part APrepare a predistribution plan for this partnership.

Part BThe following transactions transpire during the liquidation of the Wing, Mehta, Rodgers, and Yan partnership:

$1.$ Collected $80$ percent of the total accounts receivable with the rest judged to be uncollectible.

$2.$ Sold the land, building, and equipment for $$171,000.$

$3.$ Distributed safe payments of cash.

$4.$ Learned that Yan, who has become personally insolvent, will make no further contributions.

$5.$ Paid all liabilities.

$6.$ Sold all inventory for $$96,000.$

$7.$ Distributed safe payments of cash again.

$8.$ Paid actual liquidation expenses of $$14,000$ only.

$9.$ 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.