Matthews, Mitchell, and Michaels are partners In BG Land Development Company and share losses in a 5:4:1 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Assets Liabilities and Capital Cash Noncash Assets $ 27,000 147,000 Accounts Payable Mitchell, Loan $ 37,000 14,000 Matthews, Capital 75,500 Mitchell, Capital 36,800 Michaels, Capital Total Assets $174,000 Total Liabilities and Equities 10,700 $174,000 The noncash assets are sold for $110,000. 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 $ 27,000 $ 147,000 $ 37,000 $ 14,000 $ 75,500 $ Sale of assets 110,000 (147,000) $ 137,000 $ 0 $ 37,000 $ 14,000 $ (18,500) 57,000 $ 36,800 $ (14,800) 10,700 (3,700) 22,000 $ 7,000 Payment to creditors Outside Creditors (37,000) Mitchell (37,000) (14,000) (14,000) $ 86,000 $ 0 $ 0 $ 0 $ Payment to partners (86,000) 57,000 $ (57,000) 22,000 $ (22,000) 7,000 (7,000) Balances $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0