Class Work 1 The following events pertain to a partnership formed by Papa Hubert and Wimpy Christie to operate a straw doll making company. 2011 Feb. 14 The partnership was formed. Papa Hubert transferred to the partnership$80,000 cash, land worth $80,000, a building worth $480,000, and a mortgage on the building of $240,000. Wimpy Christie transferred to the partnership $40,000 cash and equipment worth $160,000 Dec.31 During 2011, the partnership earned income of just $84,000. The partnership agreement specifies that income and losses are to be divided by paying salaries of $40,000 to Papa and $60,000 to Wimpy, allowing 8% interest on beginning capital investment, and Dividing any remainder equally. 2012 Jan. 1 To improve the prospects for the company, the partners decided to take in a new partner Bran 'Go Green' McCartney, who had experience in the straw doll making business. Bran invested $156,000 for a 25% interest in the business. A bonus was transferred in equal amounts from Papa and Wimpy capital accounts to Bran capital account. Dec. 31 2013 Jan. 1 During 2012, the company earned income of $87,200. The new partnership agreement specified that income and losses would be divided by paying salaries of $60,000 to Wimpy and $80,000 to Bran (no salary to Papa) allowing 8% interest on beginning capital balances after Bran's admission, and dividing the remainder equally, Because the business could not afford the cost of a new Straw Market the three partners decided to liquidate the partnership. The assets and liabilities of the partnership were: Cash $407,200 Accounts Payable $88,000 Accounts Receivable(net) $ 68,000 Mortgage Payable $224,000 Land $ 80,000 Papa, Capital 102, Building(net) $448,000 Wimpy, Capital ? Equipment(net) $236,000 Bran, Capital The equipment was sold for $200,000 and the loss distributed equally to the partners. The accounts payable were paid. A statement of liquidation was prepared, and the remaining assets and liabilities were distributed. Papa agreed to accept cash plus the land and building at book value and the mortgage payable as payment for his share. Wimpy accepted cash and accounts receivable for his share. Bran was paid in cash. Required: Prepare journal entries to record all the facts above. Show computations & schedules, and prepare a statement of liquidation in connection with the Jan 1, 2013 entries