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On January $1,$ the partners of Mori, Lux, and Khan $($who share profits and losses in the ratio of $5$:$3$:$2,$ respectively$)$ decide to terminate operations and liquidate their partnership. The trial balance at this date follows:

The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows:

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January Collected $$70,000$ of the accounts receivable; the balance is deemed uncollectible.

Received $$57,000$ for the entire inventory.

Paid $$5,000$ in liquidation expenses.

Paid $$86,000$ to the outside creditors after offsetting a $ $$6,000$ credit memorandum received by the

partnership on January $11.$

Retained $ $$29,000$ cash in the business at the end of January to cover liquidation expenses. The

remainder is distributed to the partners.

Paid $$6,000$ in liquidation expenses.

Retained $ $$17,000$ cash in the business at the end of the month to cover additional liquidation

expenses.

Received $$165,000$ on the sale of all machinery and equipment.

Paid $$8,000$ in final liquidation expenses.

Retained no cash in the business.

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Required:

Prepare proposed schedules of liquidation on January $31,$ February $28,$ and March $31$ to determine the safe payments made to the partners at the end of each of these three months.

Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January.

Note: Amounts to be deducted should be entered with a minus sign. Prepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of February.

Note: Amounts to be deducted should be entered with a minus sign.

PLEASE USE THE ATTACHED TABLES. FILL THEM IN$.$

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