6:22 . HW 5 - Chapter 12.pdf - Read-only Partnership Liquidation E9B. Assume the following assets, liabilities, and partners' equity in the Chang and Lee partnership on December 31, 2014: Assets Liabilities + Chang, Capital + Lee, Capital $160,000 $10,000 $90,000 $60,000 + + The partnership has no cash. When the partners agree to liquidate the business, the assets are sold for $120,000, and the liabilities are paid. Chang and Lee share income and losses in a ratio of 3:1. 1. Prepare a statement of liquidation. 2. Prepare journal entries for the sale of assets, payment of liabilities, distribution of loss from realization, and final distribution of cash to Chang and Lee. III 0