On January 1, the partners of Mori, Lux, and Khan (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership.  The trial balance at this date follows:

The partners plan a program of piecemeal conversion of the partnership’s assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows:

Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months.

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Cash Accounts receivable.. Inventory...... Machinery and equipment, net... Mori, loan ... Accounts payable.. Lux, loan .... Mori, capital Lux, capital.. Khan, capital.. Totals.... Debit $ 28,000 86,000 72,000 209,000 50,000 $445,000 Credit $93,000 40,000 128,000 100,000 84,000 $445,000