Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5:3:2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows:

Assets				Liabilities and Capital
Cash	$	17,000		Accounts Payable	$	40,000
Noncash Assets		154,000		Mitchell, Loan		17,000
				Matthews, Capital		71,000
				Mitchell, Capital		29,200
				Michaels, Capital		13,800
Total Assets	$	171,000		Total Liabilities and Equities	$	171,000

Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5:3:2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Assets Cash Noncash Assets $ 17,600 154, eee Liabilities and Capital Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities $ 40,00 17,000 71,eee 29, 200 13,800 $171,600 Total Assets $171,00 The noncash assets are sold for $120.000. Required: a. Prepare a statement of partnership realization and liquidation. BG LAND DEVELOPMENT COMPANY Statement of Partnership Realization and Liquidation Lump-Sum Distribution Capital Balances Cash Noncash Assets Accounts Payable Mitchell Loan Matthews Mitchell Michaels Balances Sale of assets Payment to creditors Outside Creditors Mitchell Payment to partners Balances b. Prepare the required journal entries to account for the liquidation of the BG Land Development Company. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list Journal entry worksheet Record the payment to creditors Note: Enter debits before credits. Event General Journal Debit Credit 2 Record entry Clear entry View general journal b. Prepare the required journal entries to account for the liquidation of the BG Land Development Company. (If no entry is required a transaction/event, select "No journal entry required" In the first account fleld.) View transaction list Journal entry worksheet