After completing the liquidation schedule in S12–14, journalize the partnership’s 

(a) Sale of noncash assets for $80,000 (use a single account for Noncash Assets), 

(b) Payment of liabilities, 

(c) Payment of cash to the partners on October 31. Include an explanation with each entry.

S12–14

Suppose the partnership of Ryan Lauren, Alexis Andrews, and Scott Benroudi introduced in Exhibit 12–5 liquidates by selling all noncash assets for $80,000. Complete the liquidation schedule as shown in Exhibit 12–5 with this new information.

Exhibit 12–5

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A C DE F H K 1 Capital Lauren Andrews Benroudi Noncash Cash Assets = Liabilities + (60%) (20%) (20%) + 4 Balances before sale of assets $ 10,000 O Sale of assets and sharing of gain $90,000 $30,000 $40,000 $20,000 $10,000 150,000 (90,000) 36,000 12,000 12,000 6 Balances 160,000 30,000 76,000 32,000 22,000 7 O Payment of liabilities 8 Balances Disbursement of cash to (30,000) (30,000) 130,000 76,000 32,000 22,000 partners (130,000) (76,000) (32,000) (22,000) 10 Balances $ $ $ $ $ B 2. 3.