Total liabilities and capital                           451,000

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

Part A: Prepare a pre-distribution plan for this partnership.

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

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

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

3. Made safe capital distributions.

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

5. Paid all liabilities.

6. Sold all inventory for $71,000.

7. Made safe capital distributions again.

8. Paid liquidation expenses of $11,000.

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

Part B: Prepare journal entries to record these liquidation transactions.