On August 1, 2015, Wheat, Bran, and Oats agree to liquidate their partnership. Wheat has a capital balance of $90,000, Bran has a capital balance of $37,500, and Oats has a capital balance of $30,000. The partners share net income/net loss in a ratio of 4:3:3. Accounts payable amount to $60,000. Assets are shown on the balance sheet at $40,000 cash and $177,500 o noncash assets. All the noncash assets are sold for $188,000. Instructions a. Prepare Schedule of Cash Payments b. The journal entry to record sale of noncash assets. c. The journal entry to allocate the gain or loss on realization to the partners. d. The journal entry to record the payment of creditors. e. The journal entry to record the distribution of cash to partners. Problem 5 (7 Points) The Frick & Frack Co. reports net income of $24,000. Interest allowances are Frick $3,000 and Frack $5,000; partner salary allowances are Frick $18,000 and Frack $10,000 and the remainder is shared equally. Instructions Indicate the division of net income to each partner and prepare the entry to distribute the net income. Problem 6 (7 Points) Decker and Mader have a partnership agreement which includes the following provisions regarding sharing net income or net loss: 1. A salary allowance of $48,000 to Decker and $36,000 to Mader. 2. An interest allowance of 10% on capital balances at the beginning of the year. 3. The remainder is to be divided 60% to Decker and 40% to Mader. The capital balance on January 1, 2022, for Decker and Mader was $90,000 and $120,000, respectively. Instructions 1. Computed each partner's share of the business's $120,000 net income for the year. 2. Journalize the allocation of income. Problem 7 (10 Points) Jim Welch and Sam Thayer share partnership income on a 3:2 basis. They have capital balances of $560,000 and $280,000, respectively, when Bill Ryan is admitted to the partnership. Instructions Prepare the journal entry to record the admission of Ron Ryan under each of the following assumptions: (a) Ryan invests $320,000 for a 25% ownership interest. (b) Ryan invests $300,000 for a 30% ownership interest.