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P17-5 Statement of partnership liquidation El, Joc, and Ned agree to liquidate their consulting practice as soon as possible after the close of busi- ness on July 31, 2011. The trial balance on that date shows the following account balances: Delts Credits $13,000 12,000 35,000 Cash Accounts receivable Furniture and fixtures Accounts payable Eli capital Joe capital Ned capital $ 6,000 24,000 15,0XX0 15.000 500.000 $60,000 The partners share profits and losses 20 percent, 30 percent, and 50 percent to Eli, Joe, and Ned, respectively, after Ned is allowed a monthly salary of $4,000. August transactions and events are as follows: 1. The accounts payable are paid 2. Accounts receivable of $8,000 are collected in full Ned accepts accounts receivable with a face value and fair value of $3,000 in partial satisfaction of his capital balance. The remaining accounts receivable are written of as uncollectible 3. Furniture with a book value of $25.000 is sold for $15.000, 4. Furniture with a book value of $4,000 and an agreed-upon fair value of $1.000 is taken by Joe in partial settlement of his capital balance. The remaining furniture and fixtures are donated to Goodwill Industries, 5. Liquidation expenses of $3,000) are paid. 6. Available cash is distributed to partners on August 31. REQUIRED: Prepare a statement of partnership liquidation for the Eli. Joc, and Ned partnership for August

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