Part A The partnership of Wingler, Norris, Rodgers, and Guthrie was formed severa...

Part A

The partnership of Wingler, Norris, Rodgers, and Guthrie was formed several years ago as a local architectural firm. Several partners have recently undergone personal financial problems and have decided to terminate operations and liquidate the business. The following balance sheet is drawn up as a guideline for this process:

When the liquidation commenced, expenses of $16,000 were anticipated as being necessary to dispose of all property.

Prepare a predistribution plan for this partnership.

Part B

The following transactions transpire during the liquidation of the Wingler, Norris, Rodgers, and Guthrie partnership:

• Collected 80 percent of the total accounts receivable with the rest judged to be uncollectible.

• Sold the land, building, and equipment for $150,000.

• Made safe capital distributions.

• Learned that Guthrie, who has become personally insolvent, will make no further contributions.

• Paid all liabilities.

• Sold all inventory for $71,000.

• Made safe capital distributions again.

• Paid liquidation expenses of $11,000.

• Made final cash disbursements to the partners based on the assumption that all partners other than Guthrie are personally solvent.

Prepare journal entries to record these liquidation transactions.