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:
|Noncash assets||231,000||Frick, capital (60%)||135,000|
|Wilson, capital (20%)||37,000|
|Clarke, capital (20%)||79,000|
|Total assets||$||297,000||Total liabilities and capital||$||297,000|
Prepare journal entries to record the liquidation transactions reflected in the final statement of liquidation.
1 Record the entry for initial cash payments made to partners in accordance with predistribution plan.
2 Record the allocation of losses to partners on sale of noncash assets.
3 Record the extinguishment of all partnership liabilities.
4 Record the entry for cash payments made to partners in accordance with predistribution plan.
5 Record the allocation of losses to partners on sale of remaining noncash assets.
6 Record the payment of liquidation expenses.
7 Record the entry for final cash payments made to partners based on ending capital balances.
***Please number the journal entries, thanks!