Partners I, J and K share profits and losses equally. On March 31, 2020, the partners voted to

liquidate the partnership when its assets, liabilities, and capital were as follows:

Cash	77,000		Liabilities	440,000
Note receivable from K	60,500		Loans:
Other noncash assets	660,000		I	22,000
			J	88,000
			Capital
			I	82,500
			J	82,500
			K	82,500
	797,500			797,500

Assume the following:

1. All the noncash assets of P660,000 were sold for P297,000

2. K instructed the partnership to write off the P60,500 he borrowed from the partnership

3. All partners could eliminate any deficits in their capital accounts through offset or contribution, or both

4. All cash was distributed to outside creditors and partners

   Partners I, J and K share profits and losses equally. On March 31, 2020, the partners voted to

   liquidate the partnership when its assets, liabilities, and capital were as follows:

   Cash	77,000		Liabilities	440,000
   Note receivable from K	60,500		Loans:
   Other noncash assets	660,000		I	22,000
   			J	88,000
   			Capital
   			I	82,500
   			J	82,500
   			K	82,500
   	797,500			797,500

   Assume the following: a) All the noncash assets of P660,000 were sold for P297,000 b) K instructed the partnership to write off the P60,500 he borrowed from the partnership c) All partners could eliminate any deficits in their capital accounts through offset or contribution, or both d) All cash was distributed to outside creditors and partners Required: 1. Prepare a Statement of Partnership Liquidation 2. Prepare the journal entries to record the liquidation of the partnership