Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 7:2:1 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Assets Cash Noncash Assets Total Assets Balances Sale of assets The noncash assets are sold for $150,000. Payment to creditors Outside Creditors Mitchell Payment to partners Balances Required: a. Prepare a statement of partnership realization and liquidation. $ $ 15,000 200,000 $ $215,000 $ Cash 0 $ Accounts Payable Mitchell, Loan Matthews, Capital Mitchell, Capital Michaels, Capital Total Liabilities and Equities 0 $ 0 $ BG LAND DEVELOPMENT COMPANY Statement of Partnership Realization and Liquidation Lump-Sum Distribution Noncash Assets Liabilities and Capital Accounts Payable 0 $ 0 $ 0 $ 0 $ 0 Mitchell Loan 0 $ $ 0 0 0 $ $ 34,000 11,000 $ $ 105,000 44,000 21,000 $215,000 Matthews 0 $ 0 Capital Balances 0 $ $ Mitchell 0 0 0 $ $ $ Michaels 0 0 0

Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 7:2:1 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: The noncash assets are sold for $150,000. Required: a. Prepare a statement of partnership realization and liquidation. 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.) Journal entry worksheet Record the payment to creditors Note: Enter debite before credits. Required: a. Prepare a statement of partnership realization and liquidation. 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 field.) Journal entry worksheet C Record the sale of the assets. Note: Enter debits before credits. 2. Prepare the required journal entries to account for the liquidation of the BG Land Development Company. (If no entry is required for transaction/event, select "No journal entry required" in the first account fieid.) Journal entry worksheet Record the fnal lump-sum distribution to the partners. Note: Enter deblts before credits