PF.3 (LO 3) The partners in Crawford Company decide to liquidate the firm when the statement of financial position shows the following. Prepare entries with a capital deficiency in liquidation of a partnership. Crawford Company Statement of Financial Position May 31, 2020 Assets Owners' Equity and Liabilities Equipment 21,000 A. Jamison, capital 33.000 Accumulated depreciation-equipment (5,500) S. Moyer, capital 21.000 Inventory 34,500 P. Roper, capital 3.000 Allowance for doubtful accounts Accounts receivable (1,000) Notes payable 13,500 25,000 Accounts payable 27,000 Cash 27,500 Salaries and wages payable 4,000 101,500 101,500 The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence. 0 1. A total of 51,000 was received from converting non-cash assets into cash. 0 2. Gain or loss on realization was allocated to partners. 0 3. Liabilities were paid in full. 0 4. P. Roper paid his capital deficiency. 5. Cash was paid to the partners with credit balances. Instructions a. Prepare the entries to record the transactions. Loss on realization 23,000 Cash paid: to Jamison 21,500; to Moyer 14,100 b. Post to the cash and capital accounts. c. Assume that Roper is unable to pay the capital deficiency. 1. Prepare the entry to allocate Roper's debit balance to Jamison and Moyer. 2. Prepare the entry to record the final distribution of cash.