Part A
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:

When the liquidation commenced, expenses of $16,000 were anticipated as being necessary to dispose of all property.
Prepare a predistribution plan for this partnership.
Part B
The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:
€¢ Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible.
€¢ Sold the land, building, and equipment for $150,000.
€¢ Made safe capital distributions.
€¢ Learned that Guthrie, who has become personally insolvent, will make no further contributions.
€¢ Paid all liabilities.
€¢ Sold all inventory for $71,000.
€¢ Made safe capital distributions again.
€¢ Paid liquidation expenses of $11,000.
€¢ 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 liquidationtransactions.

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Cash Accounts receivable . 15,000 Liabilities 82,000 Rodgers, loan 74,000 ....35,000 Building and Rodgers, capital (20%) . 74,000 equipment (net) . . . . . . . . 168,000 Guthrie, capital (40%) . . . . . . . . 60,000 Total assets$451,000 Total liabilities and capital$451,000