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Partners Maness and Joiner have decided to liquidate their business. The ledger shows the following account balances Cash Inventory $ 25,000 Accounts Payable 120,000 Haness, Capital Joiner, Capital $15,000 65,000 65,000 Maness and Joiner share profits and losses in an 8.2 ratio. During the first month of liquidation, half the inventory was sold for $40,000, and $10,000 of the accounts payable was paid. During the second month, the rest of the inventory was sold for $30,000, and the remaining accounts payable were paid Cash was distributed at the end of each month, and the liquidation was completed at the end of the second month Required: Prepare a statement of partnership realization and liquidation with a schedule of safe payments for the two-month liquidation period. MANESS AND JOINER PARTNERSHIP Combined Statement of Realization and Schedule of Sale Payments Capital Cash Inventory Accounts Maness Joiner Payable Balance Sale of inventory Payment to creditors $ 05 0 $ 05 05 Payments to partners Schedule 1) 5 05 0 $ 0 $ 05 Sale of Inventory Payment to creditors $ 0 $ 0 $ 015 OS Payments to partners Balances 5 05 05 05 05 0 MANESS AND JOINER PARTNERSHIP Schedule 1 Safe Payments at End of First Month Maness Joiner 80% 20% Capital balances Potential loss on remaining inventory Safe payments to partners $ 0 $ $ EA 0

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