After the accounts are closed on February 3, 2016, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,300, $4,500, and $22,300, respectively Cash and noncash assets total $5,200 and $55,900, respectively Amounts owed to creditors total $15,000 The partners share income and losses in the ratio of 2 1 1 Between February 3 and February 28, the noncash assets are sold for $34,300, the partner with the capital deficiency The debit balance in the owners equity account of a partner pays the deficiency to the partnership An unincorporated business form consisting of two or more persons conducting business as co owners for profit , and the liabilities are paid Required 1 Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries For those boxes in which you must enter subtracted or negative numbers (balance deficiencies, payments, cash distributions, divisions of loss), use a minus sign If there is no amount to be reported for items (a) (d), the cell can be left blank However, in the balance rows, a balance of zero MUST be indicated by entering 0 2 Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency Journalize the entries on Feb 28 to (a) allocate the partners deficiency and (b) distribute the remaining cash Refer to the Chart of Accounts for exact wording of account titles

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After the accounts are closed on February 3, 2016, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett

After the accounts are closed on February 3, 2016, prior to liquidating the partnership, the capital accounts of William Gerloff, Joshua Chu, and Courtney Jewett are $19,300, $4,500, and $22,300, respectively. Cash and noncash assets total $5,200 and $55,900, respectively. Amounts owed to creditors total $15,000. The partners share income and losses in the ratio of 2:1:1. Between February 3 and February 28, the noncash assets are sold for $34,300, the partner with the capital deficiency

The debit balance in the owners equity account of a partner.

pays the deficiency to the partnership

An unincorporated business form consisting of two or more persons conducting business as co-owners for profit.

, and the liabilities are paid.

	Required:
1.	Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers (balance deficiencies, payments, cash distributions, divisions of loss), use a minus sign. If there is no amount to be reported for items (a) - (d), the cell can be left blank. However, in the balance rows, a balance of zero MUST be indicated by entering "0".
2.	Assume the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. Journalize the entries on Feb. 28 to (a) allocate the partners deficiency and (b) distribute the remaining cash. Refer to the Chart of Accounts for exact wording of account titles.