The Jergin & Morgan partnership has the following balances on December 31,2018:

Jergin and Morgan share profits 1:3, respectively. Jergin and Morgan decide to liquidate the partnership. Journalize the sale of the non-cash assets for $71,000 the payment of the liabilities, and the payment to the partners. Assume Morgan contributes cash equal to the capital deficiency. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

1. Journalize the sale of the non-cash assets for $71,000.

2. Journalize the allocation of and gain or loss on the sale of the non-cash assets.

3. Journalize the payment of the liabilities.

4. Journalize the cash contribution equal to the capital deficiency.

5. Journalize the payment to the partners.

Jergin and Morgan Balance Sheet December 31, 2018 Assets Liabilities $ 40,000 Accounts Payable 120,000 Cash $ 84,000 Non-cash Assets Partners' Equity Jergin, Capital Morgan, Capital Total Partners' Equity Total Liabilities and Partners' Equity 56,000 20,000 76,000 $ 160,000 $ 160,000 Total Assets