80.2K

Verified Solution

Link Copied!

The partnership of Frick, Wilson, and Clarke 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 A:

REQUIRED B:

REQUIRED C:

Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. 

2. Record the allocation of losses to partners on sale of noncash assets.

3. Record the extinguishment of all partnership liabilities.

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

5. Record the allocation of losses to partners on sale of remaining noncash assets.

6. Record the payment of liquidation expenses.

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

Prepare a predistribution plan for this partnership. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not intermediate calculations.) Journal entry worksheet Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. 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 $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $116,000 for $69,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $62,000. 6. Paid actual liquidation expenses of $6,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare iournal entries to record the liauidation transactions reflected in the final statement of liauidation. Prepare a predistribution plan for this partnership. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. (Do not intermediate calculations.) Journal entry worksheet Record the entry for initial cash payments made to partners in accordance with predistribution plan. Note: Enter debits before credits. 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 $8,000 are estimated as a basis for this computation. 2. Sold noncash assets with a book value of $116,000 for $69,000. 3. Paid all liabilities. 4. Distributed safe payments of cash again. 5. Sold remaining noncash assets for $62,000. 6. Paid actual liquidation expenses of $6,000 only. 7. Distributed remaining cash to the partners and closed the financial records of the business permanently. Produce a final statement of liquidation for this partnership using the predistribution plan to determine payments of cash to partners. Part C Prepare iournal entries to record the liauidation transactions reflected in the final statement of liauidation

Answer & Explanation Solved by verified expert

See Answer