Exercise 7. J. Lynn, M. Oller, and F. Tate share income/losses on a 5:3:2 basis. They have capital balances, after the dissolution journal entry, of $30,000, $26,000, and $18,000. respectively. Tate is withdrawing from the partnership under the following independent conditions. Journalize the transaction on the books of the partnership if: (a) The partership pays Tate $18,000 in cash. remainder. (b) The partneship pays Tate $10,000 in cash and Tate accepts a Note from the partneship for the (b) Exercise 8. This partnership has decided to go out of business. The Balance Sheet, after the Income has been distributed, shows Cash $20,000, Non-currect Assets $100,000, Liabilities $55.000, Equity $65,000 (reved $45,000, 60% of the Income/Losses and Escobedo $20,000, 40% of the Income/Losses). $110,000 is received when the non-cash assets are sold. Please show the Journal Entries needed for the (a) sale of the Non-Current Assets (Gain or Loss on sale distributed), (b) the pay off of the liabilities, and the (c) Distribution of the remaining assets to the partners. (Hint: Make sure after these Entiries, ALL the accounts have -0- balances.) b Cash 20.000 Non-Cash Assets 100,000 Liabilities 55,000 Rodriquez, Capital 45,000 Escobedo, Capital 20,000