The partnership of Miller, Tyson, and Spencer has decided to terminate operations and liquidate all business property. During the process, the partners expect to incur $8,000 in liquidation expenses. The balance sheet reported by this partnership at the time the liquidation commenced follows. Miller is personally insolvent and is unable to make a cash contribution. The percentages indicate the allocation of profits and losses to each of the three partners Cash 35,000 Liabilities 120,000 Noncash Assets 200,000 Miller, capital (50%) 5,000 Tyson, capital (30%) 70,000 Spencer, capital (20%) 40,000 Total Assets 235,000 Total Liabilities 235,000 Part a. Prepare Journal entries for the following transactions that occurred in chronological order: 1.) Sold noncash assets for 180,000 2.) Distribution safe cash payments to the partners 3.) Paid 120,000 of partnership's liabilities 4.) Paid 7,000 in liquidation expenses 5.) Distribution remaining cash held by the business to the partners
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