Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 6:3:1 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows:

Assets				Liabilities and Capital
Cash	$	10,000		Accounts Payable	$	32,000
Noncash Assets		172,000		Mitchell, Loan		12,000
				Matthews, Capital		87,200
				Mitchell, Capital		38,600
				Michaels, Capital		12,200
Total Assets	$	182,000		Total Liabilities and Equities	$	182,000

The noncash assets are sold for $130,000. 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 field.)