Transcribed Image Text
In: AccountingThe partnership of Wingler, Norris, Rodgers, and Guthrie wasformed several years ago as a local...The partnership of Wingler, Norris, Rodgers, and Guthrie wasformed several years ago as a local architectural firm. Severalpartners have recently undergone personal financial problems andhave decided to terminate operations and liquidate the business.The following balance sheet is drawn up as a guideline for thisprocess:Cash33000Liabilities70000A/R100000Rodgers, loan53000Inventory119000Wingler, Cap. (30%)147000Land94000Norris, Cap. (10%)106000Building & Equipment177000Rodgers, Cap. (20%)83000Guthrie, Cap. (40%)64000Total Assets523000Total Liabilities & Capital523000When the liquidation commenced, liquidation expenses of $15,000were anticipated as being necessary to dispose of all property.Part BThe following transactions transpire during the liquidation ofthe Wingler, Norris, Rodgers, and Guthrie partnership:1. Collected 90 percent of the total accounts receivable withthe rest judged to be uncollectible.2. Sold the land, building, and equipment for $159,000.3. Made safe capital distributions.4. Learned that Guthrie, who has become personally insolvent,will make no further contributions.5. Paid all liabilities.6. Sold all inventory for $78,000.7. Made safe capital distributions again.8. Paid actual liquidation expenses of $9,000 only.9. Made final cash disbursements to the partners based on theassumption that all partners other than Guthrie are personallysolvent.Prepare journal entries to record these liquidationtransactions.