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Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows:

Cash	$	100,000	Liabilities	$	80,000
Noncash assets		200,000	Fred, capital		100,000
			George, capital		120,000
Total assets	$	300,000	Total liabilities and capital	$	300,000

1.	Prepare journal entries for the following transactions: (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.	Distributed safe cash payments to the partners.
b.	Paid $40,000 of the partnerships liabilities.
c.	Sold noncash assets for $220,000.
d.	Distributed safe cash payments to the partners.
e.	Paid all remaining partnership liabilities of $40,000.
f.	Paid $8,000 in liquidation expenses; no further expenses will be incurred.
	Distributed remaining cash held by the business to the partners. home / study / business / accounting / questions and answers / fred and george have been in partnership for many ... Question: Fred and George have been in partnership for many ... Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash $ 100,000 Liabilities $ 80,000 Noncash assets 200,000 Fred, capital 100,000 George, capital 120,000 Total assets $ 300,000 Total liabilities and capital $ 300,000 Prepare a final statement of partnership liquidation. NA CASH NONCASH ASSETS LIABILITIES FRED, CAPITAL GEORGE, CAPITAL Beginning Balances ??? ??? ??? ??? ??? Distribution to Partners ??? ??? ??? ??? ??? Paid Liabilities ??? ??? ??? ??? ??? Sold noncash assets ??? ??? ??? ??? ??? Update balance ??? ??? ??? ??? ??? Distribution to partners ??? ??? ??? ??? ??? updated balances ??? ??? ??? ??? ??? Paid liabilities ??? ??? ??? ??? ??? paid liquidation expenses ??? ??? ??? ??? ??? Updated balance ??? ??? ??? ??? ??? Distribution to partners ??? ??? ??? ??? ??? Closing balances ??? ??? ??? ??? ???

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