Dennis, Verell, and Walter are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Dennis $49,000; Verell, $26,000; and Walter, $18,000. The profit-and-loss-sharing ratio has been 2:1:1 for Dennis, Verell, and Walter, respectively. The partnership has $79,000 cash, $43,000 non-cash assets, and $29,000 accounts payable. Read the requirements. To record the sale of non-cash assets at liquidation. Journalize the allocation of the gain or loss to the partners' capital accounts. Date Dec. 31 Gain on Disposal Dennis, Capital Verell, Capital Accounts and Explanation Walter, Capital To allocate the gain on liquidation of non-cash assets. Journalize the payment of the liabilities. Date Dec. 31 Accounts and Explanation Debit Credit 12,000 6,000 3,000 3,000 Debit Credit Requirements 1. Assuming the partnership sells the non-cash assets for $55,000, 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 $17,000, 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. Print Done -