= Homework: Ch 12 Homework B - Graded Question 8, EF12-22 (similar to) Part 2 of 8 HW Score: 18.26%, 8.03 of 44 points Points: 0.7 of 6 Save Danks, Vale, and Waddington are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Danks $45,000; Vale, $30,000; and Waddington, $16,000. The profit-and-loss-sharing ratio has been 2:1:1 for Danks, Vale, and Waddington, respectively. The partnership has $81,000 cash, $42,000 non-cash assets, and $32,000 accounts payable. Requirement 1. Assuming the partnership sells the non-cash assets for $56,000, record the journal entries for the sale of non-cash assets, allocation of gain or loss on liquidation, the payment of the outstanding liabilities, and the distribution of remaining cash to partners. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Journalize the sale of the non-cash assets for $56,000. Date Dec. 31 Cash Non-cash Assets Gain on Disposal Accounts and Explanation To record the sale of non-cash assets at liquidation. Journalize the allocation of the gain or loss to the partners' capital accounts. Date Accounts and Explanation Dec. 31 Gain on Disposal Danks, Capital Vale, Capital Waddington, Capital To allocate the gain on liquidation of non-cash assets. Debit Credit 56,000 42,000 14,000 Debit Credit 14.000