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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 $9,000. At the date the partnership ceases operations, the balance sheet is as follows:

Cash	$	58,000	Liabilities	$	44,000
Noncash assets		170,000	Alex, capital		102,000
			Bess, capital		82,000
Total assets	$	228,000	Total liabilities and capital	$	228,000

Part A: Prepare journal entries for the following transactions:

1. Distributed safe cash payments to the partners.
2. Paid $26,400 of the partnerships liabilities.
3. Sold noncash assets for $184,000.
4. Distributed safe cash payments to the partners.
5. Paid remaining partnership liabilities of $17,600.
6. Paid $7,200 in liquidation expenses; no further expenses will be incurred.
7. Distributed remaining cash held by the business to the partners.

1. Part B: Prepare a final statement of partnership liquidation.

   Prepare a final statement of partnership liquidation.

   	ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Cash Non-cash Assets Liabilities Alex, Capital Bess, Capital Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances

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