The partnership at December 31,2017 has cash $60,000, noncash assets $440,000,

Liabilities $240,000, and the following capital balances: Hob $160,000 and Bob $100,000. The Partnership is liquidated, and $360,000 in cash is received from sale the noncash assets. Hob and Bob

Income ratios are 3:2 respectively

Instructions

(a) Prepare liquidation statements.

(b) Prepare the entries to record the following,

(1) The sale of noncash assets.

(2) Payment of creditors.

(3) Distribution of cash to the partners.