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: Liabilities Rodgers, loan Cash Accounts receivable $ 33,000 100,000 Inventory 119,000 Land 94,000 Building and equipment (net) 177,000 Total assets $523,000 Total liabilities and capital Wingler, capital (308) Norris, capital (10%) Rodgers, capital (201) Guthrie, capital (40%) $ 70,000 53,000 147,000 106,000 83,000 64,000 $523,000 When the liquidation commenced, liquidation expenses of $15,000 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 90 percent of the total accounts receivable with the rest judged to be uncollectible. 2. Sold the land, building, and equipment for $159,000. 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 $78,000. 7. Distributed safe payments of cash again. 8. Paid actual liquidation expenses of $9,000 only 9. Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent. 2 8.33 points eBook Print References 1. Collected 90 percent of the total accounts receivable with the rest judged to be uncollectible. 2. Sold the land, building, and equipment for $159,000. 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 $78,000. 7. Distributed safe payments of cash again. 8. Paid actual liquidation expenses of $9,000 only. 9. Made firal cash disbursements to the partners based on the assumption that all partners other than Guthri 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 $ 0 $ 0 $ 0 $ 0 Assumed loss of Schedule 2 Step two balances $ 0 $ 0 $ 0 $ 0 Assumed loss of Schedule 3 Step three balances $ 0 $ 0 $ 0 $ 0 S View transaction list Journal entry worksheet eBook: Record the cash received from accounts receivable and loss allocated to partners. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Cash 90,000 Wingler, Capital 3,000 Norris, Capital 1,000 Rodgers, Capital Guthrie, Capital Accounts receivable 2,000 4,000 100,000 Record entry Clear entry View general journal