The partnership of Seymour, Packard, & Malone has experienced operating losses for three consecutive years. The partnerswho have shared profits and losses in the ratio of Seymour, 15%; Packard, 60%; and Malone, 25%are liquidating the business. They ask you to analyze the effects of liquidation. They present the following condensed partnership balance sheet at December 31, 2018:

Requirements

1. Assume the non-cash assets are sold for $50,000.
2. Prepare the liquidation schedule ( model used in class or on page 656 of text)

1. Journalize the sale of the non- cash assets.
2. Journalize the gain or loss on sale.
3. How much cash will Malone receive, if any ?

Note : Packard is insolvent and has no cash in his personal bank account.