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Termination and Liquidation of a Business

Good Evening,

I'm having a little difficulty understanding this problem. I entered some of the values, but I'm confused. Please advise.

The Partnership of Frick, Wilson and Clarke has elected to cease all operations and liquidate it's business property.
A balance sheet drawn up at this time shows the following account balances:

Cash................................$48,000 Liabilities.........................$35,0000
Non Cash Assets...........177,000 Frick, Capital 60%...........101,000

wilson,Capital 20%..........28,000
Clarke, Capital 20%...........61,000

Total Assets................$225,000 Total Liabilities and Capital $225,000

The Following transactions occur in liquidating this business:
~Distributed safe captial balances immediately to the partners. Liquidation expenses of $9000
~Sold noncash assets with a book calue of $80,000 for $48,000
~Paid all liabilities
~Distributed safe capital balances again
~Sold remaining noncash assets for $44,000
~Paid liquidation expenses of $7,000
~Distributed remaining cash to the partners and closed the financial records of the business permanently.

Produce a final schedule of Liquidation for this partnership

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PROBLEM

The Partnership of Frick, Wilson and Clarke has elected to cease all operations and liquidate it's business property.
A balance sheet drawn up at this time shows the following account ...

Solution Summary

Termination and liquidation of a business are examined.

$2.19