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	$	28,000		Accounts Payable	$	30,000
Noncash Assets		154,000		Mitchell, Loan		8,000
				Matthews, Capital		84,000
				Mitchell, Capital		41,200
				Michaels, Capital		18,800
Total Assets	$	182,000		Total Liabilities and Equities	$	182,000

The noncash assets are sold for $110,000. 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.)

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 Sale of assets Payment to creditors Outside Creditors Mitchell Payment to partners Balances Journal entry worksheet B C Record the sale of the assets. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the payment to creditors Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet .. . Record the final lump-sum distribution to the partners. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journal