Question: Accounting IC Chapter 12 Exercise On April 30th, the PAL partnership liquidates. Prior to the liquidation, the partnership's general ledger had the following account

Accounting IC Chapter 12 Exercise On April 30th, the PAL partnership liquidates.

Accounting IC Chapter 12 Exercise On April 30th, the PAL partnership liquidates. Prior to the liquidation, the partnership's general ledger had the following account balances: Cash $89,000 Peter, Capital $37,000 Non-Cash Assets 41,000 Liabilities Aria, Capital 24,000 68,000 Leon, Capital 1,000 PAL sold its Non-Cash Assets for $11,000. Peter, Aria, and Leon share profit/loss 7:1:2. Assume any partner with a deficient capital account balance is insolvent. Instructions Prepare associated journal entries, including descriptions, for the following: 1. Sale of the Non-Cash Assets 2. Allocation of the Gain/(Loss) Realized on the Sale of the Non-Cash Assets 3. Payment of Liabilities 4. Distribution of Cash to Partners (Hint: Two entries: may wish to look in the textbook)

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