The partnership of Wingler, Norris, Rodgers, and Guthrie 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 Accounts receivable $ 27,000 94,000 Inventory Land 113,000 91,000 Liabilities Rodgers, loan Wingler, capital (30%) Building and equipment (net) 174,000 Norris, capital (10%) Rodgers, capital (20%) Guthrie, capital (40%) Total assets $499,000 Total liabilities and capital $ 67,000 47,000 138,000 100,000 80,000 67,000 $499,000 When the liquidation commenced, liquidation expenses of $14,000 were anticipated as being necessary to dispose of all property. Part A Prepare a predistribution plan for this partnership. Part B The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie 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 $156,000. 3. Distributed safe payments of cash. 4. Learned that Guthrie, who has become personally insolvent, will make no further contributions. 5. Paid all liabilities. 6. Sold all inventory for $81,000. 7. Distributed safe payments of cash again. 5. Paid all liabilities. 6. Sold all inventory for $81,000. 7. Distributed safe payments of cash again. 8. Paid actual liquidation expenses of $11,000 only. 9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personal Prepare journal entries to record these liquidation transactions. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a predistribution plan for this partnership. (Do not round intermediate calculations.) Wingler, Capital Norris, Capital Rodgers, Loan and Guthrie, Capital Capital Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances $ 138,000 $ 100,000 $ 127,000 $ 67,000 $ 138,000 $100,000 $127,000 $ 67,000 $ 138,000 $ 100,000 $ 127,000 $ 67,000 $ 138,000 $100,000 $127,000 $ 67,000 3 03 Wingler, Capital Norris, Capital Rodgers, Capital Rodgers, Loan Cash 4 04 No journal entry required 5 05 Liabilities Cash 177,200 67,000 67,000 6 06 Cash 81,000 Wingler, Capital 9,600 Norris, Capital 3,200 Rodgers, Capital 6,400 Guthrie, Capital 12,800 Inventory 113,000 7 07 Wingler, Capital 40,500 Norris, Capital 13,500 Rodgers, Capital 27,000 Cash 81,000 7 07 Wingler, Capital 40,500 Norris, Capital 13,500 Rodgers, Capital 27,000 Cash 81,000 8 08 Wingler, Capital 3,300 Norris, Capital 1,100 Rodgers, Capital 2,200 Guthrie, Capital 4,400 Cash 11,000 9 9.a Wingler, Capital Norris, Capital Rodgers, Capital Guthrie, Capital 10 9.b Wingler, Capital 1,500 Norris, Capital 500 Rodgers, Capital 1,000 Cash 3,000