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  3. the following transactions occur in liquidating th

The following transactions occur in liquidating this business: Distributed cash based on safe capital...

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Accounting

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The following transactions occur in liquidating this business:

Distributed cash based on safe capital balances immediately to the partners. Liquidation expenses of $10,000 are estimated as a basis for this computation.

Sold noncash assets with a book value of $98,000 for $66,000.

Paid all liabilities.

Distributed cash based on safe capital balances again.

Sold remaining noncash assets for $53,000.

Paid actual liquidation expenses of $8,000 only.

Distributed remaining cash to the partners and closed the financial records of the business permanently.

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The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances $ 66,000 Liabilities Cash Noncash assets Frick, capital (68%) Wilson, capital (20%) Clarke, capital (20%) $ 46,000 135,000 37,000 231,000 Total assets 297,000Total liabilities and capita.l $297,000

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