Danks, Vale, and Waddington are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $45,000; Vale, $30,000, and Waddington, S16,000. The profit-and-loss-sharing ratio has been 2:1:1 for Danks, Vale, and Waddington, respectively. The partnership has $81,000 cash, $42,000 non-cash assets, and $32,000 accounts payable. Requirement 1. Assuming the partnership sells the non-cash assets for $56,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $56,000. Requirements Date Accounts and Explanation Debit Credit Dec. 31 Cash 56.000 Non-cash Assets Gain on Disposal 42,000 14,000 1. Assuming the partnership sells the non-cash assets for $56,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. 2. Assuming the partnership sells the non-cash assets for $19,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. To record the sale of non-cash assets at liquidation. Journalize the allocation of the gain or loss to the partners' capital accounts. Date Accounts and Explanation Debit Credit Dec. 31 Gain on Disposal 14,000 Print Done 7,000 3,500 Danks, Capital Vale, Capital Waddington, Capital To allocate the gain on liquidation of non-cash assets. 3,500 Journalize the payment of the liabilities. Date Accounts and Explanation Debit Credit Dec. 31