Question 1:

Ali and Tamer Company is liquidated when its ledger shows the assets, liabilities, and equity accounts are reported as follows:

Assets		Equity and Liabilities
Inventory Accounts Receivable Cash Equipment Less: Accumulated depreciation	50,000 40,000 20,000 60,000 (20,000)	Ali, Capital Tamer, Capital Accounts payable	40,000 60,000 50,000
	150,000		150,000

Ali and Tamer Company agree to liquidate the partnership on the following terms. (1) The non-cash assets of the partnership will be sold to Alpha Co. for $150,000 cash. (2) The partnership will pay its partnership liabilities. The income ratios of the partners are 2:3, respectively.

Required:

1. prepare the required entries.
2. Prepare the schedule of cash payments.

Question 2:

Resolve question 1 assuming that the non-cash assets of the partnership will be sold for 100,000 cash.