The partners in The Avenue Company decide to liquidate the firm when the statement of financial position shows the following:

The Avenue Company
Statement of Financial Position
May 31, 2020
Assets		Liabilities and Owners Equity
Equipment	21000	Jamison, capital	33000
Accumulated depreciation -equipment	-5500	Moyer, capital	21000
Inventory	34500	Roper, capital	3000
Accounts receivable	25000	Notes payable	13500
Allowance for doubtful accounts	-1000	Accounts payable	27000
Cash	27500	Salaries and wages payable	4000
Total Assets	101500	Total Liabilities & Owners Equity	101500

The partners share income and loss 5:3:2. During the process of liquidation, the following transactions were completed in the following sequence:

1. Total of $51,000 was received from converting non-cash assets into cash.
2. Gain or loss on realization was allocated to partners.
3. Liabilities were paid in full.
4. Roper paid his capital deficiency.
5. Cash was paid to the partners with credit balances.

Instructions:

A. Prepare the entries to record the transactions no 1 - 5.

B. Post to the cash and capital accounts.

C. Assume that Roper is unable to pay the capital deficiency, prepare the entry to allocate Ropers debit balance to Jamison and Moyer.

D. Prepare the entry to record the final distribution of cash.

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