1. Irby, Jalisco, and Whitehorse are partners in a video rental business, sharing profits and losses in a 2:1:1 ratio. Business has decreased due to the number of other rental stores in their area. They decide it would be best to liquidate. Their December 31, 20XX balance sheet information is as follows:

   1. cash	$15,000
      video Inventory	75,000
      accounts payable	25,000
      irby,capital	25,000
      jalisco, capital	20,000
      whitehorse, capital	20,000

   2. Prepare the general journal entries, without explanations, to show: (1) the sale of the noncash assets; (2) the distribution of the losses or gains; (3) the payment to the creditors; and (4) the final distribution of cash under each of the following independent assumptions.

   3. The video inventory is sold for $63,000.

   4. The video inventory is sold for $25,000

   5. The video inventory is sold for $20,000 and the partner with the deficit can an does pay from personal assets.

   6. The same assumption as c above, except the partner with the deficit cannot pay.