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Problem 10-29 (Algo) (LO 10-6) On January 1, the partners of Morl, Lux, and Khan (who shate 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 plecemeal conversion of the partnership's assets to minimize liquidation losses. All avallable cash, less an amount retalned to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the tiquidition transactions foltows: January , Febriary Cellected 557,000 of the accounts roceivable; the balance is deened uncollectible. Mecelved $44,000 for the entire Inventory. purtuerinio on Janury 13 renainder is distriliuted to the pertenes. Rotained $16,000 cash in the business at the end of January to cover liquidation expenses. The renainder is distributed to the partners. February Paid $9,900 in Jiquidetion expenses. Retained $4,000 cash in the business at the end of the nonth to cover additionil 1iquidation expenses. March Received $152,000 on the sale of all machinery and equipeent. Pafd $11,000 In final liquidation expenses. Retained no cash in the business. 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. Complete this question by entering your answers in the tabs below. Prepare proposed schedule of liquidation to determine the safe payments mode to the porthers at the end of January. Notes Amounts to be deducted should be entered with a minus sign. \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{7}{|c|}{\begin{tabular}{l} MORI, LUX, AND KHAN PARTNERSHIP \\ Proposed Schedule of Liquidation \end{tabular}}} \\ \hline & posed S & dule of Liqu & ation & & & \\ \hline \multicolumn{7}{|c|}{ January 31} \\ \hline & Cash & \begin{tabular}{l} Noncash \\ Assets \end{tabular} & Liabilities & \begin{tabular}{c} Morl, Capital \\ and Loan \\ 50% \end{tabular} & \begin{tabular}{l} Lux, Capital \\ and Loan \\ 30% \end{tabular} & \begin{tabular}{l} Khan, \\ Capital 20% \end{tabular} \\ \hline \multicolumn{7}{|l|}{ Balances - January 1} \\ \hline \multicolumn{7}{|l|}{ Collected accounts receivable } \\ \hline \multicolumn{7}{|l|}{ Sold inventory } \\ \hline \multicolumn{7}{|l|}{ Paid liquidation expenses } \\ \hline \multicolumn{7}{|l|}{ Paid accounts payable } \\ \hline \multicolumn{7}{|l|}{ Subtotal (actual balances) } \\ \hline \multicolumn{7}{|l|}{ Maximum loss on assets } \\ \hline \multicolumn{7}{|l|}{ Maximum liquidation expenses } \\ \hline Subtotal (potential baiances) & & & & 4 & & \\ \hline \multicolumn{7}{|l|}{ Allocation of deficit capital butance } \\ \hline Sate payments to parthers - Jahuary 31 & & & & & & \\ \hline \end{tabular}

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