Problem 1 The following balance sheet extract of the partnership firm of Small, Medium and Large has been prepared just before they decided to liquidate their firm on June 30, 2019. $ Cash 60,000 Accounts receivable 40,000 Other non-cash assets 300,000 Accounts payable 120,000 Small, capital 85,000 Medium capital 95,000 Large, capital 100,000 The partners have been distributing profits and losses in the ratio of 2:2:1 respectively between Small, Medium and Large. The following transactions took place during the process of liquidation. a. The accounts receivable recovered $35,000. b. Other non-cash assets were sold for $120,000 c. The liabilities were paid in full. d. All the partners were solvent and deficiencies, if any, were paid to the partnership in cash. The balance was shared between the partners. Required: A. Prepare a statement of liquidation for the firm. B. Show the required journal entries to give effect to the above transactions