Response to the following problem:
The partnership of Roth, Stern, and Tom has respective capital balances of $20,000, $25,000,and $24,000. The assets of the partnership as of June 15 are: cash, $12,000; other assets, $60,000; and accounts payable, 53,000. All noncash assets arc sold for $1 5,000. The profit and loss ratio is 2: I : 1. Record the necessary general journal entries for the liquidation and realization as follows:
1. Recognize the sale of the noncash assets.
2. Distribute the loss or gain on realization to the partners respective capital accounts,
3. Pay the creditors.
4. Distribute the remaining cash to the partners. (If there is R capital deficit, it must be shared by the remaining partners before the distribution of cash.)