Lennon, Newman, and Ott Operate the LNO Partnership During the First Month of Liquidation, Other Assets with a Provides

Lennon, Newman, and Ott operate the LNO Partnership.The partnership agreement provides that the partners share profits in the ratio of 40:40:20, respectively.Unable to satisfy the firm's debts, the partners decide to liquidate.Account balances just prior to the start of the liquidation process are as follows: $$\begin{array} { l r r } & \underline { \text { Debit } } & \underline { \text { Credit } } \\\text { Cash } & \$ 90,000 & \\\text { Other Assets } & 330,000 \\\text { Liabilities } & & \$ 165,000\\ \text { Ott, Loan } & & 36,000\\\text { Lennon, Capital } && 165,000\\\text { Newman, Capital } & & 36,000 \\\text { Ott, Capital } & & 39,000 \\\text { Ott, Drawing } & \underline { 21,000 } \\\text { Totals } & \underline { \$ 441,000 } & \underline { \$ 441,000 } \end{array}$$
During the first month of liquidation, other assets with a book value of $150,000 are sold for $165,000, and creditors are paid.In the following month unrecorded liabilities of $12,000 are discovered and assets carried on the books at a cost of $90,000 are sold for $36,000.During the third month the remaining other assets are sold for $42,000 and all available cash is distributed.
Required:
Prepare a schedule of partnership realization and liquidation.A safe distribution of cash is to be made at the end of the second and third months.The partners agreed to hold $30,000 in cash in reserve to provide for possible liquidation expenses and/or unrecorded liabilities.All of the partners are personally insolvent.