Rob Davis, Stewart Vintu, and Vern Wison are liquidating their partner ship. Before selling the assets and paying the liabilities, the capital balances are Davis $40,000; Vintu, $24,000; and Wilson, $16,000. The profit-and-loss-sharing ratio has been 1:1-2 for Davis, Vintu, and Wilson, respectively. The partnership has $64,000 cash, $38,000 non-cash assets, and $22,000 accounts payable.
Requirements. Assuming the partnership sells the non-cash assets for $46,000, record the journal entries:
a. for the sale of non-cash assets,
b. allocation of gain or loss on liquidation,
c. the payment of the outstanding liabilities,
d. the distribution of remaining cash to partners.