The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its...

       

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The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets Liabilities $ 66,000 231,000 Bauer, capital (60%) Ohtani, capital (20%) Souza, capital (20%). $ 46,000 135,000 37,000 79,000 Total assets $ 297,000 Total liabilities and capital $ 297,000 Required: Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $98,000 for $66,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Prepare a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Part A Part B Part C Prepare a predistribution plan for this partnership. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Bauer, Capital Ohtani, Capital Souza, Capital < Part A Part B > Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A B C D E F G Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B C D E F G Record the sale of noncash assets with a book value of $98,000 for $66,000. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B C D E F G Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B C D E F G Record the entry for cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry The partnership of Bauer, Ohtani, and Souza has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash Noncash assets Liabilities $ 66,000 231,000 Bauer, capital (60%) Ohtani, capital (20%) Souza, capital (20%). $ 46,000 135,000 37,000 79,000 Total assets $ 297,000 Total liabilities and capital $ 297,000 Required: Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: 1. Distributed safe payments of cash immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $98,000 for $66,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $53,000. 6. Paid actual liquidation expenses of $8,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Prepare a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Complete this question by entering your answers in the tabs below. Part A Part B Part C Prepare a predistribution plan for this partnership. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Beginning balances Assumed loss of Schedule 1 Step one balances Assumed loss of Schedule 2 Step two balances Assumed loss of Schedule 3 Step three balances Bauer, Capital Ohtani, Capital Souza, Capital < Part A Part B > Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet A B C D E F G Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B C D E F G Record the sale of noncash assets with a book value of $98,000 for $66,000. Note: Enter debits before credits. Transaction 2 General Journal Debit Credit Record entry Clear entry View general journal Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B C D E F G Record the extinguishment of all partnership liabilities. Note: Enter debits before credits. Transaction 3 General Journal Debit Credit View general journal Record entry Clear entry Part A Part B Part C Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < A B C D E F G Record the entry for cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. Transaction 4 General Journal Debit Credit View general journal Record entry Clear entry