question fred and george have been in partnership for many years thepartners who sha 4284729
Fred and George have been in partnership for many years. Thepartners, who share profits and losses on a 60:40 basis,respectively, wish to retire and have agreed to liquidate thebusiness. Liquidation expenses are estimated to be $10,000. At thedate the partnership ceases operations, the balance sheet is asfollows:
Noncash assets200,000 Fred, capital100,000
Total assets$300,000 Total liabilitiesand capital$300,000
Prepare journal entries for the following transactions:(Do not round intermediate calculations. If no entry isrequired for a transaction/event, select “No journal entryrequired” in the first account field.)
a.Distributed safe cash paymentsto the partners.
b.Paid $40,000 of thepartnership’s liabilities.
c.Sold noncash assets for$220,000.
d.Distributed safe cash paymentsto the partners.
e.Paid all remaining partnershipliabilities of $40,000.
f.Paid $8,000 in liquidationexpenses; no further expenses will be incurred.
g.Distributed remaining cash heldby the business to the partners.