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$27,000 Accounts Payable$37,000

Noncash Assets 147,000 Mitchell, Loan 14,000

Matthews, Capital 75,500

Mitchell, Capital 36,800

Michaels, Capital 10,700

Total Assets$174,000 Total Liabilities and Equities$174,000

The noncash assets are sold for $110,000.

Required:

a. Prepare a statement of partnership realization and liquidation.

Ws, Mitchen, and Mi losses 3.4.1 duo, respectively me Comp balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows: Assets Timbalates and Capital Cash $ 27,000 Accounts Payable $ 37,000 Noncash Assets 147,000 Mitchell, Loan 14,000 Matthews, Capital 75,500 Mitchell, Capital 36,800 Michaels, Capital 10.700 Total Assets 5174,000 Total Liabilities and Equities $174,000 The noncash assets are sold for $110,000 Required: a. Prepare a statement of partnership realization and liquidation BO LAND DEVELOPMENT COMPANY Statement of Partnership Realization and Liquidation Lump-Sur Distribution Capital Balances Noncash Accounts Mitchell Cash Assets Matthews Michaels Mitchell Loan Payable 27.000 $ 147.000 s 37000 $ 14.000 10,700 110,000 (147,000) 137.000 OS 37 000 $ 14.000 $ 05 05 10,700 5 Balance Sale of 5 Payment to create Outside Credo Michel 137.000 05 OS 37,000 $14.000 01510.700 Payment partner Balances 137000 05 37000 16 000 $ 013010700 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.) View transaction list Journal entry worksheet