The partnership of Saxton, Parkerson, & Murray has experienced operating losses for three consecutive years. The partners—who have shared profits and losses in the ratio of Saxton, 10%; Parkerson, 65%; and Murray, 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, 2024:

Requirements
1. Assume the non-cash assets are sold for $170,000. Journalize the liquidation transactions.
2. Assume the non-cash assets are sold for $70,000. Journalize the liquidation transactions.

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Cash Non-cash Assets Total Assets Assets SAXTON, PARKERSON, & MURRAY Balance Sheet December 31, 2024 $ 30,000 Accounts Payable 125,000 $ 155,000 Liabilities Partners' Equity Saxton, Capital Parkerson, Capital Murray, Capital Total Partners' Equity Total Liabilities and Partners' Equity $ 58,000 17,000 48,000 32,000 97,000 $ 155,000