Question: Matthews Mitchell and Michaels are partners in BG Land Development

Matthews, Mitchell, and Michaels are partners in BG Land Development Company and share losses in a 5:3:2 ratio, respectively. The balance sheet on June 30, 20X1, when they decide to liquidate the business, is as follows:



The noncash assets are sold for $110,000.

Required
a. Prepare a statement of partnership realization and liquidation.
b. Prepare the required journal entries to account for the liquidation of BG Land DevelopmentCompany.
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  • CreatedMay 23, 2014
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