Need only 4 & 7 Entries

Problem 15-31 (LO 15-1,15-2,15-5) The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances 40,000 171,000 46,000 97,000 $354,000 Cash Noncash assets $69,000 Liabilities 285,000 Frick, Wilson, Clarke, capital (60%) (20 capital capital %) (20%) Total assets $354,000 Total liabilities and capital Part A Prepare a predistribution plan for this partnership Part B The following transactions occur in liquidating this business 1. Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation 2. Sold noncash assets with a book value of $116,000 for $69,000 3. Paid all liabilities 4. Distributed cash based on safe capital balances again 5. Sold remaining noncash assets for $62,000 6. Paid actual liquidation expenses of $6,000 only 7. Distributed remaining cash to the partners and closed the financial records of the business permanently