CASE 3 Partners I, J and K share profits and losses equally. On March 31, 2020, the partners voted to liquidate the partnership when its assets, liabilities, and capital were as follows: 440,000 Cash Note receivable from K Other noncash assets 77,000 60,500 660,000 Liabilities Loans: 1 22,000 88,000 Capital 1 J 82,500 82,500 82,500 797,500 797,500 Assume the following: a) All the noncash assets of P660,000 were sold for P297,000 b) K instructed the partnership to write off the P60,500 he borrowed from the partnership c) All partners could eliminate any deficits in their capital accounts through offset or contribution, or both d) All cash was distributed to outside creditors and partners Required: 1. Prepare a Statement of Partnership Liquidation 2. Prepare the journal entries to record the liquidation of the partnership