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Baker, Strong and Weak have called on you to assist them in winding up the affairs of their partnership. You are able to gather the following information. The trial balance of the partnership at June $30,2023$ is as follows:

Debit Cash $6000$ Account Receivable $22,000$ Inventory $14,000$ Plant, Equipment $99,000$ Baker Advance $12,000$ and

CreditAccount Payable $17,000$ Baker Capital $67,000$ Strong Capital $45,000$ Weak Capital $31,500$

Totals Debit $-160,500$ and Credit $-160,500$

The partners share profits and losses as follows: Baker, $40\%$; Strong $40\%,$ and Weak $20\%.$ The partners are considering an offer of $$100,000$ for the account receivable, inventory and plant and equipment as of June $30.$ The $$100,000$ would be paid to the partners in installments, the number and the amounts of which are to be negotiated

Required: Prepare a schedule to show how the potential cash $$106,000$ would be distributed as it become available.

Part B

Cash is distributed to the partners at the end of each month.

plan developed in Part A where appropriate.

Assume the facts in Part A except that the partners liquidate in stages instead of accepting the offer of $$100,000.$ Cash is distributed to the partners at the end of each month.

A summary of the liquidation transactions follows:

July

$$16,500-$Collected on account receivable, balance is uncollectible.

$$10,000-$ Received for the entire inventory.

$$1000-$ Liquidation expenses paid

$$8,000-$Cash retained in the business at the end of the month.

August

$$1,500$ Liquidation expenses paid

As part payment of his capital interest. Weak accepted a piece pf Special equipment that he developed that had a book value of $$4,000.$ The partners agreed that a value of $$10,000$ should be placed on the machine for liquidation purposes.

$$2,500-$Cash retained in the business at the end of the month.

September

$$75,000-$Received on sale of remaining plant and equipment

$$1,000-$Liquidation expenses paid. No cash retained in the business

Required:

Prepare a schedule of cash payments as of September $302023.$ Showing how the cash was actually distributed. Use the advance cash distribution plan developed in Part A where appropriate

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