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The partnership of Garcia, Iglesias, and Kassabian was formed several years ago as a local tax preparation firm. Two partners have reached retirement age, and the partners have decided to terminate operations and liquidate the business. Liquidation expenses of $$50,000$ are expected. The partnership balance sheet at the start of liquidation is as follows:

Cash $ $46,000$ Liabilities $ $186,000$

Accounts receivable $76,000$ Garcia, loan $46,000$

Office equipment $($net$)66,000$ Garcia, capital $(25\%)130,000$

Building $($net$)190,000$ Iglesias, capital $(25\%)46,000$

Land $180,000$ Kassabian, capital $(50\%)150,000$

Total assets $ $558,000$ Total liabilities and capital $ $558,000$

The following transactions transpire in chronological order during the liquidation of the partnership:

Collected $90$ percent of the accounts receivable and wrote the remainder off as uncollectible.

Sold the office equipment for $$28,000,$ the building for $$142,000,$ and the land for $$184,000.$

Distributed safe payments of cash.

Paid all liabilities in full.

Paid actual liquidation expenses of $$38,000$ only.

Made final cash distributions to the partners.

Required:

Prepare journal entries to record these liquidation transactions.Journal entry worksheet

Note: Enter debits before credits.

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