Problem # 1 Lump-Sum Liquidation with Gain on Realization After several years of operations, the partnership of Arenas, Dulay and Laurente is to be Liquidated. After making the closing entries on June 30, 2015, the following accounts remained open: Account balance Account Title Debit Credit Cash P 50,000 Non-cash Assets 2,350,000 Liabilities P400,000 Arenas, Capital 900,000 Dulay, Capital 500,000 Laurente, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally. Required: Preparstatement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of gain on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.