The balance sheet of the Rose Partnership as of July 31, 2011, follows.

The partners-Gerri, Susi, and Mari-Share income and losses in the ratio of 5:3:2. Because of a mutual disagreement, Gerri, Susi, and Mari have decided to liquidate the business.
Assume that Gerri cannot contribute any additional personal assets to the company during liquidation and that the following transactions occurred during liquidation:
(a) Accounts receivable were sold for 60 percent of their book value.
(b) Inventory was sold for $276,000.
(c) Equipment was sold for $300,000
(d) Accounts payable were paid in full.
(e) Gain or loss from realization was distributed to the partners' Capital accounts.
(f) Gerri's deficit was transferred to the remaining partners in their new income and loss ratio,
(g) The remaining cash was distributed to Susi and Mari.

Required
1. Prepare a statement of liquation.
2. Prepare entries in Journal form to liquidate the partnership and distribute any remainingcash.

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Rose Partnershlp Balance Sheet July 31, 2011 AssETS LIABILITIES Cash Accounts receivable Inventory Equipment (net) 6,000 Accounts payable $480,000 120,000 264,000 462000 Gerri, Capital PARTNERS EQUTY Susi, Capital Mari, Capital Total partners equity $372000 $ 72,000 180,000 120,000 Total iabilities and Total assets 5852000 partners' equity 5852.000