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Alex and Bess have been in partnership for many years. The partners, who share profits and losses on a 70:30 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $4,500. At the date the partnership ceases operations, the balance sheet is as follows: Cash Noncash assets $ 46,000 115,000 Liabilities Alex, capital Bess, capital Total liabilities and capital $ 35,000 80,500 45,500 $ 161,000 Total assets $ 161,000 Part A: Prepare journal entries for the following transactions that occurred in chronological order: a. Distributed safe cash payments to the partners. b. Paid $21,000 of the partnerships liabilities. c. Sold noncash assets for $126,000. d. Distributed safe cash payments to the partners. e. Paid remaining partnership liabilities of $14,000. f. Paid $3,300 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. Required A Required B Prepare a final statement of partnership liquidation. (Amounts to be deducted should be entered in minus sign.) Alex, Capital Bess, Capital Beginning balances Distribution to partners ALEX AND BESS PARTNERSHIP Statement of Partnership Liquidation Non-cash Cash Liabilities Assets $ 46,000 $ 115,000 (6,500) 0 0 (21,000) 0 126,000 (115,000) 0 $ 144,500 $ 0 0 Paid liabilities 0 0 Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses Updated balances Distribution to partners Closing balances

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