Assume the same information as in QS 11-18 except that the Equipment was sold for $85,000 on April 1, 2023. Prepare the journal entry to record the final distribution of cash.

Data From QS 11-18

Sam, Andrew, and Mary were partners in Gem Skateboard Company. The partners shared profits and losses 3:2:3, respectively. On April 1, 2023, the partnership showed the following account balances just prior to liquidation:

Equipment was sold for $175,000. Prepare the journal entry to record the final distribution of cash.

Transcribed Image Text:

Cash Equipment Accum. Deprec. Equipment Sam, Capital Andrew, Capital Mary, Capital $65,000 $48,000 $34,000 Account balances immediately prior to liquidation $32,000 $151,000 $36,000