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	$ 9,000	Accounts Payable	$ 26,000
Noncash Assets	135,000	Mitchell, Loan	15,000
		Matthews, Capital	65,000
		Mitchell, Capital	24,000
		Michaels, Capital	14,000
Total Assets	$ 144,000	Total Liabilities and Equities	$ 144,000

The noncash assets are sold for $105,000.

Required:

Prepare a statement of partnership realization and liquidation.

1. Prepare the required journal entries to account for the liquidation of BG Land Development Company