The Pen, Evan, and Torves Partnership has asked you to assist In winding-up Its business affalrs. You complle the following Information: 1. The partnership's trial balance on June 30,201, Is 2. The partners share profits and losses as follows: Pen, 50 percent; Evan, 30 percent; and Torves, 20 percent. 3. The partners are considering an offer of $100,000 for the firm's accounts recelvable, Inventory, and plant and equipment as of June 30. The $100,000 will be pald to creditors and the partners In Installments, the number and amounts of which are to be negotlated. The partners have decided to liquidate their partnership by Installments Instead of accepting the $100,000 offer. Cash is distributed to the partners at the end of each month. A summary of the liquidation transactions follows: July 1. Collected $16,500 on accounts recelvable; balance is uncollectlble. 2. Recelved $10,000 for the entire Inventory. 3. Pald $1,000 liquidation expense. 4. Paid $17,000 to creditors. 5. Retalned $8,000 cash in the business at the end of the month. August 6. Pald $1,500 in liquidation expenses. 7. As part payment of his capltal, Torves accepted an Item of speclal equipment that he developed, which had a book value of $4,000. The partners agreed that a value of $10,000 should be placed on this Item for Ilquidation purposes. 8. Retalned $2,500 cash in the business at the end of the month. September 9. Recelved $75,000 on sale of remaining plant and equipment. 10. Pald $1,000 Iiquidation expenses, retalning no cash in the business. Required: Prepare a statement of partnership realization and liquidation with supporting schedules of safe payments to partners. Note: Do not round your Intermedlate calculations. Round your final answers to the nearest whole dollar. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ PET PARTNERSHIP } \\ \hline \multicolumn{11}{|c|}{ Statement of Partnership Realization and Liquidation } \\ \hline \multicolumn{11}{|c|}{ From July 1, 20X1, through September 30, 20X1 } \\ \hline & \multirow{2}{*}{\multicolumn{2}{|c|}{ Cash }} & \multirow{2}{*}{\multicolumn{2}{|c|}{ Noncash Assets }} & \multirow[b]{2}{*}{ Accounts Payable } & \multicolumn{5}{|c|}{ Capital } \\ \hline & & & & & & & & & & Torves 20% \\ \hline \multicolumn{11}{|l|}{ Preliquidation balances } \\ \hline \multicolumn{11}{|l|}{ July: } \\ \hline \multicolumn{11}{|l|}{ Assets realized } \\ \hline \multicolumn{11}{|l|}{ Paid liquidation costs } \\ \hline \multicolumn{11}{|l|}{ Paid creditors } \\ \hline & s & 0 & $ & 0 & $ & s & 0 & s & 0 & s \\ \hline \multicolumn{11}{|l|}{ Safe Payments } \\ \hline & $ & 0 & $ & 0 & $ & s & 0 & s & 0 & $ \\ \hline \multicolumn{11}{|l|}{ August: } \\ \hline \multicolumn{11}{|l|}{ Equipment withdrawn } \\ \hline \multicolumn{11}{|l|}{ Paid liquidation costs } \\ \hline & s & 0 & $ & 0 & $ & s & 0 & s & 0 & s \\ \hline \multicolumn{11}{|l|}{ Safe Payments } \\ \hline & s & 0 & $ & 0 & $ & $ & 0 & s & 0 & s \\ \hline \multicolumn{11}{|l|}{ September: } \\ \hline \multicolumn{11}{|l|}{ Assets realized } \\ \hline \multicolumn{11}{|l|}{ Paid liquidation costs } \\ \hline & s & 0 & $ & 0 & $ & $ & 0 & $ & 0 & $ \\ \hline \multicolumn{11}{|l|}{ Payments to partners } \\ \hline Postliquidation balances & $ & 0 & $ & 0 & $ & $ & 0 & s & 0 & $ \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ PET PARTNERSHIP } \\ \hline \multicolumn{6}{|c|}{ Schedule of Safe Payments to Partners } \\ \hline & \multicolumn{2}{|c|}{\begin{tabular}{l} Pen \\ 50% \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Evan \\ 30% \end{tabular}} & \begin{tabular}{c} Torves \\ 20% \end{tabular} \\ \hline \multicolumn{6}{|c|}{ Schedule 1: July 31,201} \\ \hline \multicolumn{6}{|l|}{ Capital balances } \\ \hline \multicolumn{6}{|c|}{ Potential Loss on noncash assets } \\ \hline \multicolumn{6}{|l|}{ Cash retained } \\ \hline & $ & 0 & $ & 0 & $ \\ \hline \multicolumn{6}{|c|}{ Allocation of Pen's potential deficit } \\ \hline & $ & 0 & $ & 0 & $ \\ \hline \multicolumn{6}{|c|}{ Allocation of Torves' potential deficit } \\ \hline Safe payment & $ & 0 & $ & 0 & $ \\ \hline \multicolumn{6}{|c|}{ Schedule 2: August 31,201} \\ \hline \multicolumn{6}{|l|}{ Capital balances } \\ \hline \multicolumn{6}{|c|}{ Potential Loss on noncash assets } \\ \hline \multicolumn{6}{|l|}{ Cash retained } \\ \hline & $ & 0 & $ & 0 & $ \\ \hline \multicolumn{6}{|c|}{ Allocation of Torves' potential deficit } \\ \hline & $ & 0 & $ & 0 & $ \\ \hline \multicolumn{6}{|c|}{ Allocation of Pen's potential deficit } \\ \hline Safe payment & $ & 0 & $ & 0 & $ \\ \hline \end{tabular}