Matthews, Mitchell, and Michaels are partners in the 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. Capital Balances Cash Noncash assests Accounts Payable Mitchell Loan Matthews Mitchell Michaels Balances Sale of assets Payment to creditors Outside Creditors Mitchell Payment to partners Balances

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

1.

Record sale of assets.

2.

Record payment to creditors

3.

Record final lump-sum distribution to partners.