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	$	21,000	Liabilities	$	70,000
Accounts receivable		88,000	Rodgers, loan		41,000
Inventory		107,000	Wingler, capital (30%)		129,000
Land		88,000	Norris, capital (10%)		94,000
Building and equipment (net)		171,000	Rodgers, capital (20%)		77,000
			Guthrie, capital (40%)		64,000
Total assets	$	475,000	Total liabilities and capital	$	475,000

When the liquidation commenced, liquidation expenses of $18,000 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 $153,000.
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 $75,000.
7. Distributed safe payments of cash again.
8. Paid actual liquidation expenses of $15,000 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.