Statement of Partnership Liquidation After the accounts are closed on April 10, prior to Squidating the partnership, the capital accounts of Zach Fairchild, Austin Lowes, and Amber Howard are $24,800, $4,500, and $18,900, respectively Cash and noncash assets total $6,400 and $48,600, respectively. Amounts owed to creditors total $6,800. The partners share income and losses in the ratio of 111:2. Between April 10 and April 30, the noncash assets are sold for $25,000, the partner with the capital deficiency pays the deficiency to the partnership, and the lubilities are paid. Required: 1. Prepare a statement of partnership liquidation, indicating (a) the sale of assets and division of loss, (b) the payment of sabilities, (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, Lowe, and Howard Statement of Partnership Liquidation for Period April 10-30 Balances before relation Sale of assets and division of Payment of labrities Bances after payment of Recipe of deficiency Cak distributed to partners Noncash Cash Assets Fairchild, Capitat (1/4) Luwes, Capital (X/4) Howard, Catal (2/4) 2. Assume 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. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT Zach Fairchild, Capital Amber Howard, Capital Austin Lowes, Capital DEBIT CREDIT b. Journalize the entry to distribute the remaining cash. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT Zach Fairchild, Capital Amber Howard, Capital Cash DEBIT CREDIT Statement of Partnership 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 $24,800, $4,500, and $18,900, respectively Cash and noncash as total $6,400 and $48,600, respectively. Amounts owed to creditors total $6,800. 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 $25,800, the partner with the capital deficiency pays the deficiency to the partnership, and the labies 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 ce 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 "g" Statement of Partnership Liquidation Hancash Cast Fairchild, Capital (774) Lies, Capital (A/4) Howard, Capital 13/07 Balances before realization Sale of assets and division of Payment of abbes Balances after payment of Receipt of deficiency Cash distrouted to partners Final balances 2. Assume 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. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT Zach Fairchild, Capital Amber Howard, Capital Austin Lowes, Capital DEBIT CREDIT E b. Journalize the entry to distribute the remaining cash. For a compound transaction, if an amount box does not require an entry, leave it blank. ACCOUNT Zach Fairchild, Capital Amber Howard, Capital Cash DEBIT CREDIT