Amp, Volt, and Watt are partners in the Electric Company and share profits in a 5:3:2 ratio. The balance sheet on June 30, 20X1, when they decide to liquidate the business. is as follows:

The noncash assets are sold for \(\$ 95,000\). Rather than require payments, all partners agree to offset the receivable from Amp against his capital credit.
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a. Prepare a statement of partnership realization and liquidation.

b. Prepare the required journal entries to account for the liquidation of the Electric Company.

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Assets Liabilities and Equities Cash $ 20,000 Liabilities $ 30,000 Amp, Loan 15,000 Volt, Loan 10,000 Noncash Assets 135,000 Amp, Capital 80,000 Volt, Capital 36,000 Watt, Capital 14,000 Total Assets $170,000 Total Liabilities and Equities: $170,000