Next, the data to work the problem. After closing the company accounts on September 10, 20Y8 and before liquidating the corporation, the balances in the capital accounts of John Smith, Mary Ressy, and Peter Rivers are $42,000, $7,500, and $36,500, respectively. The cash account balance is $23,500 and the non-cash asset balance is $84,500. Total debts are $22,000. The partners share profits and losses in the ratio of 1:1:2. Between the dates of September 10 and 30, the non-cash assets were sold for $48,500, the partner with the deficit in the capital account paid his deficit to the partnership and all debts were paid. Instructions: 2 Prepare the statement or report of the liquidation of the company including: (a) the sale of the assets and the division of the profit or loss, (b) the payment of the debts, (c) the receipt of the capital deficit of the corresponding partner and (d) the distribution of the money in cash. Assume that the partner with the capital account deficit files for bankruptcy and does not have the resources to pay the deficit. Record the journal receipts for (a) the allocation of the capital shortfall among the partners and (b) the distribution of the remaining cash among the partners.