The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balance.

Cash $ 61,000 Liabilities $ 44,000
Noncash assets 213,000 Frick, capital (60%) 123,000
Wilson, capital (20%) 34,000
Clarke, capital (20%) 73,000
Part A

Prepare a predistribution plan for this partnership

Frick, Capital Wilson, Capital Clarke, Capital
Beginning Balance
Loss
Step one balances
Loss
Step two balances
Loss
Step three balances
Part B

The following transactions occur in liquidating this business:

1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation.

2. Sold noncash assets with a book value of $92,000 for $61,000.

3. Paid all liabilities.

4. Distributed cash based on safe capital balances again.

5. Sold remaining noncash assets for $50,000.

6. Paid actual liquidation expenses of $6,000 only.

7. Distributed remaining cash to the partners and closed the financial records of the business permanently.

Part C

Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation