QUESTION 5 - WORTH 20 POINTS On January 1, 2019, the partners of Moe, Larry, and Curly (who shared profits and losses in the ratio of 5:3:2, respectively) decided to liquidate their partnership. The trial balance at this date was as follows: Credit Debit $ 23,400 85,800 67,600 245,700 39,000 Cash Accounts Receivable Inventory Machinery and equipment, net Moe, loan Accounts payable Larry, loan Moe, capital Larry, capital Curly, capital Totals $ 68,900 26,000 153,400 117,000 96,200 $461,500 $461,500 The partners planned an installment program to dispose of the business assets and to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, was to be distributed to the partners at the end of each month. A summary of liquidation transactions follows: January $66,300 was collected on the accounts receivable; the balance was deemed to be uncollectible. $49,400 was received for the entire inventory. $2,600 in liquidation expenses were paid. $65,000 was paid to outside creditors, after receiving a $3,900 credit memo from a creditor on January 11. Cash of $13,000 was retained at the end of the month to cover unrecorded liabilities and anticipated expenses. The balance of cash was distributed to the partners. February $3,900 in liquidation expenses were paid. $7,800 in cash was retained at the end of the month to cover unrecorded liabilities and anticipated expenses. March $189,800 was received on the sale of all machinery and equipment. $7,500 in final liquidation expenses were paid. No cash was retained as all cash was distributed to partners. REQUIREMENT: Prepare a schedule to calculate the safe payments to be made to the partners at the end of January. Page 6 of 9