Carson and Worden decided to dissolve and liquidate Carson & Worden LLP on September 23, 2005. On that date, the balance sheet of the partnership was as follows:

On September 23, 2005, noncash assets with a carrying amount of $70,000 realized $60,000, and $64,000 was paid to creditors and partners, $1,000 being retained to cover possible liquidation costs. On October 1, 2005, the remaining noncash assets realized $18,000 (net of liquidation costs), and all available cash was distributed to partners. Carson and Worden share net income and losses 40% and 60%, respectively.

Instructions

a. Prepare a cash distribution program for Carson & Worden LLP on September 23, 2005, to determine the appropriate distribution of cash to partners as it becomes available.

b. Prepare journal entries for Carson & Worden LLP on September 23 and October 1, 2005, to record the realization of assets and distributions of cash to creditors and partners.