deficiency (543) limited liability company (LLC) (528) liquidation (539) partnership (527) partnership agreement (527) realization (539) statement of members' equity (545) statement of partnership equity (545) statement of partnership liquidation (540) Q38 Cash Radcliffe, Sonders, and Towers, who share in income and losses in the ratio of 2:3-5 decided to discontinue operations as of April 30 and liquidate their partnership. After the accounts were closed on April 30, the following trial balance was prepared 5,900 Noncash Assets 109,900 Liabilities 26,800 Radcliffe, Capital 14,600 Sonders, Capital 27,900 Towers, Capital 46,500 115,800 115,800 Between May 1 and May 18, the noncash assets were sold for $27,400, and the liabilities were paid. Instructions 1. Assuming that the partner with the capital deficiency pays the entire amount owed to the partnership, prepare a statement of partnership liquidation. 2. Journalize the entries to record (a) the sale of the assets, (b) the division of loss on the sale of the assets, (c) the payment of the liabilities, (d) the receipt of the defi- ciency, and (e) the distribution of cash to the partners