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 $ $25,000$ Liabilities $ $77,000$

Accounts receivable $92,000$ Rodgers, loan $45,000$

Inventory $111,000$ Wing, capital $(30\%)135,000$

Land $90,000$ Mehta, capital $(10\%)98,000$

Building and equipment $($net$)173,000$ Rodgers, capital $(20\%)79,000$

Yan, capital $(40\%)57,000$

Total assets $ $491,000$ Total liabilities and capital $ $491,000$

When the liquidation commenced, liquidation expenses of $$10,000$ 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 $$155,000.$

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 $$84,000.$

Distributed safe payments of cash again.

Paid actual liquidation expenses of $$7,000$ 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. $\backslash$table$[[$No$,$Transaction,General Journal,Debit,Credit$],[$A$,01,$Cash,$82,800,],[$Assessment Tool iFrame Capital$],[,,$Mehta, Capital,,$],[,,$Rodgers, Capital,,$],[,,$Yan, Capital,,$],[,,$Accounts receivable,,$92,000],[B,02,$Cash,$155,000,],[,$Wing, Capital,,$],[,$Mehta, Capital,,$],[,$Rodgers, Capital,,$],[,$Yan, Capital,,$],[,$Land,,$],[,$Building and equipment,,$155,000],[C,03,$Rodgers, Loan,,$],[,$Mehta, Capital,,$],[,$Rodgers, Capital,,$],[,$Wing, Capital,,$],[,$Cash,,$],[D,04,$No journal entry required,,$],[E,05,$Liabilities,,$],[,$Cash,,$],[F,06,$Cash,,$],[,$Yan, Capital,,$],[,$Mehta, Capital,,$],[,$Rodgers, Capital,,$],[,$Wing, Capital,,$],[,$Inventory,,$],[$G$,07,$Mehta, Capital,,$]]$