The after-closing trial balances of the Bea, Pat, and Tim partnership at December 31, 2016, included the following accounts and balances:
Cash ..................................................... $120,000
Accounts receivable-net ............................. 140,000
Inventory ............................................... 200,000
Plant assets-net ...................................... 200,000
Trademarks ............................................ 20,000
Total debits ........................................... $680,000
Accounts payable ..................................... $150,000
Notes payable ......................................... 100,000
Bea capital (profit-sharing ratio, 50%) ............. 170,000
Pat capital (profit-sharing ratio, 30%) .............. 180,000
Tim capital (profit-sharing ratio, 20%) .............. 80,000
Total credits ......................................... $680,000
The partnership is to be liquidated as soon as possible, and all available cash except for a $10,000 contingency balance is to be distributed at the end of each month prior to the time that all assets are converted into cash.
During January 2017, $100,000 was collected from accounts receivable, inventory items with a book value of $80,000 were sold for $100,000, and available cash was distributed.
During February 2017, Bea received plant assets with a book value of $60,000 and a fair value of $50,000 in partial settlement of her equity in the partnership. Also during February, the remaining inventory items were sold for $60,000, liquidation expenses of $2,000 were paid, and a liability of $8,000 was discovered. Cash was distributed on February 28.
During March 2017, the plant assets were sold for $110,000, the remaining noncash assets were written off, final liquidation expenses of $5,000 were paid, and cash was distributed. The dissolution of the partnership was completed on March 31, 2017.
REQUIRED:
Prepare a statement of partnership liquidation for the Bea, Pat, and Tim partnership for the period January 1 to March 31, 2017.