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Statement of Partnership Liquidation After the accounts are closed on April 10, prior to liquidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $40,200, $7,200, and $31,400, respectively. Cash and noncash assets total $10,000 and $79,200, respectively. Amounts owed to creditors total $10,400. The partners share income and losses in the ratio of 1:1:2. Between April 10 and April 30, the noncash assets are sold for $42,000, the partner with the capital deficiency pays the deficiency to the partnership, and the liabilities are paid. Required: 1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of liabilities, (c) the receipt of the deficiency (from the appropriate partner), and (d) the distribution of cash. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If there is no amount or an amount is zero, enter "0". Fairchild, Lowes, and Howard Statement of Partnership Liquidation For the Period April 10-30 Capital Cash Noncash Assets Liabilities Fairchild (1/4) + Lowes (1/4) + Howard (2/4) Balances before realization Sale of assets and division of loss Balances after realization Payment of liabilities Balances after payment of liabilities Receipt of deficiency Balances Cash distributed to partners Final balances Check My Work 2 moro Chock Mr Work ucor romaining Previous 2. Assume that the partner with the capital deficiency declares bankruptcy and is unable to pay the deficiency. a. Journalize the entry to allocate the partner's deficiency. If an amount box does not require an entry, leave it blank. Account Debit Credit b. Journalize the entry to distribute the remaining cash. If an amount box does not require an entry, leave it blank. Account Debit Credit