Fred and George have been in partnership for many years. The partners, who share profits and losses on a 60:40 basis, respectively, wish to retire and have agreed to liquidate the business. Liquidation expenses are estimated to be $10,000. At the date the partnership ceases operations, the balance sheet is as follow: Cash $100,000 Liabilities $80,000 Noncash Assets 200,000 Fred, capital 100,000 Total assets 300,000 Total liabilities and capital 300,000 1. Prepare journal entries for the following transactions:(Do not round intermediate calculations. If no entry is require for a transaction/event, select” No journal entry required” in the first account field.) a. Distributed safe cash payments to the partners. b. Paid $40,000 of the partnership’s liabilities. c. Sold noncash assets for $220,000. d. Distributed safe cash payments to the partners. e. Paid all remaining partnership liabilities of $40,000. f. Paid $8,000 in liquidation expenses; no further expenses will be incurred. g. Distributed remaining cash held by the business to the partners. View transaction list View general journal Transaction General Journal Debit Credit a. George, Capital b. Liabilities c. Cash d. Fred, Capital e. Liabilities f. Fred, Capital g. Fred, Capital 2. Prepare a final statement of partnership liquidation. Fred and George partnership Statement of Partnership Liquidation Cash Noncash Assets Liabilities Fred, capital George Beginning balances Distribution to partners Paid liabilities Sold noncash assets Updated balances Distribution to partners Updated balances Paid liabilities Paid liquidation expenses updated balances Distribution to partners Closing balances
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