Chelsea,Harold,and Ryan are liquidating their business.They share income and losses in a 1:2:3 ratio,respectively,and currently have capital balances of $30,000,$26,000,and $24,000,respectively.In addition,the partnership has $10,000 in cash,$30,000 in accounts payable,and $100,000 in noncash assets.Chelsea and Harold are personally solvent,but Ryan is not.Assuming that the noncash assets are sold for $40,000,prepare all liquidation entries in the journal provided without explanation.

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The Answer of Chelsea,Harold,and Ryan are liquidating their business.They share income and losses in a 1:2:3 ratio,respectively,and currently have capital balances of $30,000,$26,000,and $24,000,respectively.In addition,the partnership has $10,000 in cash,$30,000 in accounts payable,and $100,000 in noncash assets.Chelsea and Harold are personally solvent,but Ryan is not.Assuming that the noncash assets are sold for $40,000,prepare all liquidation entries in the journal provided without explanation.

Chelsea,Harold,and Ryan Are Liquidating Their Business