he 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: Cash $ 60,000 Liabilities $ 40,000 Noncash assets 219,000 Frick, capital (60%) 129,000 Wilson, capital (20%) 35,000
The
Cash
$ 60,000
Liabilities
$ 40,000
Noncash assets
219,000
Frick, capital (60%)
129,000
Wilson, capital (20%)
35,000
Clarke, capital (20%)
75,000
Total assets
$279,000
Total liabilities and capital
$279,000
Part A
Prepare a predistribution plan for this partnership.
Part B
The following transactions occur in liquidating this business:
Distributed safe payments of cash immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation.
Sold noncash assets with a book value of $94,000 for $60,000.
Paid all liabilities.
Distributed safe payments of cash again.
Sold remaining noncash assets for $51,000.
Paid actual liquidation expenses of $6,000 only.
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
*please show all work with calculations please***
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