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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 $7,000. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 66,000 250,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 48,000 150,000 118,000 $ 316,000 Total assets $ 316,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $28,800 of the partnership's liabilities. c. Sold noncash assets for $268,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $19,200. f. Paid $5,500 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. NO Transaction General Journal Debit Credit 1 a 6,800 X Bess, Capital Cash OO 6,800 x 2 b. Liabilities 28,800 Cash 28,800 3 C. Cash 268,000 Alex, Capital Bess, Capital 10,800 7,200 Noncash assets 250,000 4 d 156,600 Alex, Capital Bess, Capital Cash 118,200 X 274,800 5 e. Liabilities 19,200 Cash 19,200 6 f. Alex, Capital Bess, Capital 3,300 2,200 Cash 5,500 7 g 900 Alex, Capital Bess, Capital Cash 600 1,500 Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) Beginning balances Distribution to partners Paid liabilities Sold noncash assets ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Non- Alex, Bess, Cash cash Liabilities Capital Capital Assets $ $ 66,000 $ 250,000 $ (48,000) X (150,000) X $ (118,000) X (4,200) X 0 0 0 4,200 X (28,800) 0 28,800 x 0 0 268,000 (250,000) 0 (10,800) X (7,200) X $ 301,000 $ 0$ (19,200) X $ X $ (121,000) X (160,800) (274,800) X 0 0 156,600 X 118,200 X $ 26,200 $ 0$ (19,200) X $ (4,200) X $ (2,800) (19,200) 0 19,200 X 0 0 (5,500) 0 0v 3,300 X 2,200 X $ 1,500 $ 0$ 0 $ (900) X $ (600) X (1,500) 0 900 X 600 X Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances OOOOO $ 0 0 $ 0 $ 0 $ 0

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