The Pen, Evan, and Torves Partnership has asked you to assist in winding-up its business affairs. You compile the following information:

1. The partnerships trial balance on June 30, 20X1, is

	Debit				Credit
Cash		$	6,000
Accounts Receivable (net)			22,000
Inventory			14,000
Plant & Equipment (net)			99,000
Accounts Payable						$	17,000
Pen, Capital							55,000
Evan, Capital							45,000
Torves, Capital							24,000
Total		$	141,000			$	141,000

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 firms accounts receivable, inventory, and plant and equipment as of June 30. The $100,000 will be paid to creditors and the partners in installments, the number and amounts of which are to be negotiated.

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 receivable; balance is uncollectible.
2. Received $10,000 for the entire inventory.
3. Paid $1,000 liquidation expense.
4. Paid $17,000 to creditors.
5. Retained $8,000 cash in the business at the end of the month.

August

6. Paid $1,500 in liquidation expenses.
7. As part payment of his capital, Torves accepted an item of special 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 liquidation purposes.
8. Retained $2,500 cash in the business at the end of the month.

September

9. Received $75,000 on sale of remaining plant and equipment.
10. Paid $1,000 liquidation expenses, retaining no cash in the business.

Required: Prepare a statement of partnership realization and liquidation with supporting schedules of safe payments to partners. (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar.)

Statement of Partnership Realization and Liquidation From July 1, 20X1, through September 30, 20X1 Noncash Assets Accounts Payable Cash 6,000 Pen 50% $ 55,000 Capital Evan 30% $ 45,000 Torves 20% $ 24,000 $ Preliquidation balances July Assets realized Paid liquidation costs Paid creditors $ 6,000 $ 0 $ 0 $ 55,000 $ 45,000 $ 24,000 E Safe Payments $ 6,000 $ 0 $ 0 $ 55,000 $ 45,000 $ 24,000 August Equipment withdrawn Paid liquidation costs $ 6,000 $ 0 $ 0 $ 55,000 $ 45,000 $ 24,000 Safe Payments $ 6,000 $ 0 $ 0 $ 55,000 $ 45,000 $ 24,000 September Assets realized Paid liquidation costs $ 6,000 $ 0 $ 55,000 $ 45,000 $ 24,000 Payments to partners Postliquidation balances $ 6,000 $ 0 $ 0 $ 55,000 $ 45,000 $ 24,000