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:

When the liquidation commenced, liquidation expenses of $23,000 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 $171,000.
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 $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 Guthrie are personally solvent.

Prepare journal entries to record these liquidation transactions.

Cash Accounts receivable Inventory Land Building and equipment (net) $ 57,000 124,000 143,000 106,000 189,000 Liabilities Rodgers, loan Wingler, capital (30%) Norris, capital (10%) Rodgers, capital (20%) Guthrie, capital (40%) Total liabilities and capital $ 58,000 77,000 183,000 130,000 95,000 76,000 $619,000 Total assets $619,000 Required A Required B Prepare a predistribution plan for this partnership. (Do not round intermediate calculations.) Wingler, Capital Norris, Capital Rodgers, Loan and Capital Guthrie, Capital $ 0 $ 0 $ 0 $ 0 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 $ 0 $ 0 $ 0 $ 0 $ $ 0 $ $ 0 $ 0 3 Record the entry for initial distribution of cash as per predistribution plan. Record the elimination of deficit balance of insolvent partner. 9 10 Record the distribution of remaining cash based on final capital balances. 3 03 Wingler, Capital Norris, Capital Rodgers, Capital Rodgers, Loan Cash 73,860 X 24,620 % 49,240 98,480 >> 246,200 9 9.a Wingler, Capital Norris, Capital Rodgers, Capital Guthrie, Capital Cash 4,500 1,500 X 3,000 10 9.b Wingler, Capital Norris, Capital Rodgers, Capital Cash