Alex and Bess have been in partnership for many years. Thepartners, who share profits and losses on a 70:30 basis,respectively, wish to retire and have agreed to liquidate thebusiness. Liquidation expenses are estimated to be $8,000. At thedate the partnership ceases operations, the balance sheet is asfollows: Cash $ 56,000 Liabilities $ 43,000 Noncash assets 150,000Alex, capital 105,000 Bess, capital 58,000 Total assets $ 206,000Total liabilities and capital $ 206,000 Part A: Prepare journalentries for the following transactions: Distributed safe cashpayments to the partners. Paid $25,800 of the partnership’sliabilities. Sold noncash assets for $163,000. Distributed safecash payments to the partners. Paid remaining partnershipliabilities of $17,200. Paid $6,400 in liquidation expenses; nofurther expenses will be incurred. Distributed remaining cash heldby the business to the partners. Part B: Prepare a final statementof partnership liquidation.Required A Required B Prepare journalentries for the following transactions: (Do not round intermediatecalculations. If no entry is required for a transaction/event,select "No journal entry required" in the first account field.) a.Distributed safe cash payments to the partners. b. Paid $25,800 ofthe partnership’s liabilities. c. Sold noncash assets for $163,000.d. Distributed safe cash payments to the partners. e. Paidremaining partnership liabilities of $17,200. f. Paid $6,400 inliquidation expenses; no further expenses will be incurred. g.Distributed remaining cash held by the business to thepartners.
