In the Ehrlich company, partners Lisa, Zach, and Josh have income ratios of 3:2:1. At the time of liquidation, there was $40,000 of cash, $204,000 of non-cash assets, $160,000 of liabilities, and the 3 partners had capital balances of $52,000, $24,000, and $8,000, respectively.

The non cash assets were sold for $168,000.

Using the attached spreadsheets, prepare a schedule of cash payments and the 4 necessary journal entries for each step of the liquidation process. SHOW ALL WORK

Name Section Date Homework Partnership liquidation schedule Ehrlich Company Ehrlich Company Schedule of Cash Payments Account Titics Debit Credit Noncash Assets Lisa Capital Zach Capital Josh Capital Cash Liabilities 3 4 15 6 Item balance before liquidation 218 2 2 1 & 2: sale of noncash assets and 3 allocation of gainlass 4 5 new balances 6 73: pay liabilities 8 9 new balances 10 12 4: cash distributions to partners 13 14 tinal balances 2 18 9 10 11 12 13 114 15 116 117 18 19 20