Refer to the data in exercise E16-8. During the liquidation process for the APB Partnership, the following events occurred:

1. During the first month of liquidation, noncash assets with a book value of $85,000 were sold for $65,000, and $21,000 of the liabilities were paid.

2. During the second month, the remaining noncash assets were sold for $79,000. The loan receivable from Adams was collected, and the rest of the creditors were paid.

3. Cash is distributed to partners at the end of each month.

In E16-8

Required
Prepare a statement of partnership realization and liquidation with a schedule of safe payments to partners for the liquidation period.

Assets Liabilities and Equities Cash Adams, Loan Other Assets S 40,000 iabilities Adams, Capital Peters, Capital Blake, Capital Total Liabilities & Equities $50,000 55,000 75,000 70,000 $250,000 10,000 200,000 Total Assets $250,000