Reference no: EM133114911

Question - On January 1, the partners of Van, Bakel, and Cox (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows: DebitCreditCash$20,000 Accounts receivable 70,000 Inventory 56,000 Machinery and equipment, net 193,000 Van, loan 34,000 Accounts payable $61,000Bakel, loan 24,000Van, capital 120,000Bakel, capital 92,000Cox, capital 76,000Totals$373,000$373,000 The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows: JanuaryCollected $53,000 of the accounts receivable; the balance is deemed uncollectible. Received $40,000 for the entire inventory. Paid $4,000 in liquidation expenses. Paid $56,000 to the outside creditors after offsetting a $5,000 credit memorandum received by the partnership on January 11. Retained $12,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed to the partners. FebruaryPaid $5,000 in liquidation expenses. Retained $5,000 cash in the business at the end of the month to cover additional liquidation expenses. MarchReceived $148,000 on the sale of all machinery and equipment. Paid $7,000 in final liquidation expenses. Retained no cash in the business. Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months.