Partnership Liquidation
Josh, John, and Hassan are partners in a retail lighting store. They share income and losses in the ratio of 2:2:1, respectively. The partners have agreed to liquidate the partnership. The partnership balance sheet before the liquidation follows.

Josh, John, and Hassan Partnership Balance sheet August 31, 2014
Assets Liabilities
Cash $ 280,000 Accounts payable $ 360,000 Other assets 880,000
Partners' equity
Josh, capital $ 400,000
John, capital 240,000
Hassan, capital 160,000
Total partners' equity $ 800,000 Total assets $1,160,000 Total liabilities and partners' equity $1,160,000

The other assets were sold on September 1, 2014, for $720,000. Accounts payable were paid on September 4, 2014. The remaining cash was distributed to the partners on Sep- tember 11, 2014.
(Continued)

REQUIRED
1. Prepare a statement of liquidation.

2. Prepare the following journal entries:
a. The sale of the other assets.
b. Payment of the accounts payable.
c. The distribution of the loss from realization.
d. The distribution to the partners of the remaining cash.