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21. Alex and Bess have been in partnership for many years. The partners, who share...

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21. Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $5,000. At the date the partnership ceases ope rations, the balance sheet is as follows: Cash Noncash assets.... 50,000 150,000 Alex, capital. . $40,000 90,000 70,000 $200,000 Total assets . . . $200,000 Total liabilities and capital. Part A Prepare journal entries for the following transactions: a. Distributed safe cash payments to the partners b. Paid $30,000 of the partnership's liabilities. c. Sold noncash assets for $160,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $10,000. f. Paid $4,000 in liquidation expenses; no further expenses will be incurred g. Distributed remaining cash held by the business to the partners. Part B Prepare a final statement of partnership liquidation

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