Problem $15-31($Algo$)($LO $15-2,15-3,15-7)$

The partnership of Bauer, Ohtanl, 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:

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 $\backslash (\backslash$$ $10,000\backslash )$ are estimated as a basis for this computation.

$2.$ Sold noncash assets with a book value of $\backslash (\backslash$$ $104,000\backslash )$ for $\backslash (\backslash$$ $64,000\backslash ).$

$3.$ Pald all llabilities.

$4.$ Distributed safe payments of cash again.

$5.$ Sold remalning noncash assets for $\backslash (\backslash$$ $56,000\backslash ).$

$6.$ Pald actual liquidation expenses of $\backslash (\backslash$$ $8,000\backslash )$ only.

$7.$ Distributed remaining cash to the parthers and closed the financlal 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. Answer is not complete.

Complete this question by entering your answers in the tabs below.

Prepare a predistribution plan for this partnership.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|$l$|\}$

$\backslash$hline & Bauer, Capital & Ohtani, Capital & Souza, Capital $\backslash \backslash$

$\backslash$hline Beginning balances & $\backslash$$ $150,000$ & $\backslash$$ $40,000$ & $\backslash$$ $85,000\backslash \backslash$

$\backslash$hline Assumed loss of Schedule $1$ & & $\backslash ((40,000)\backslash )$ & $\backslash ((40,000)\backslash )\backslash \backslash$

$\backslash$hline Step one balances & $150,000$ & $0$ & $45,000\backslash \backslash$

$\backslash$hline Assumed loss of Schedule $2$ & & $\backslash (0\backslash \%\backslash )$ & $\backslash \backslash$

$\backslash$hline Step two balances & $150,000$ & $0$ & $45,000\backslash \backslash$

$\backslash$hline Assumed loss of Schedule $3$ & & $0$ & $\backslash \backslash$

$\backslash$hline Step three balances & $150,000$ & $0$ & $45,000\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$ 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.

B Record the sale of noncash assets with a book value of $\backslash (\backslash$$ $104,000\backslash )$ for $\backslash (\backslash$$ $64,000\backslash ).$

C Record the extinguishment of all partnership liabilities.

ance with

D Record the entry for cash payments made to partners in accordance with predistribution plan.

E Record the sale of the remaining noncash assets for $\backslash (\backslash$$ $56,000\backslash ).$

F Record the payment of liquidation expenses.

G Record the entry for final cash payments made to partners based on ending capital balances.

Note: $=$ Journal entry has been entered. 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.

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.