Jason Edson and Peggy Karam agreed to liquidate their partnership on April 30 of the current year. On that date, after financial statements were prepared and closing entries were posted, the general ledger accounts had the balances shown in the Working Papers.

A cash receipts journal, page 6, a cash payments journal, page 8, and a general journal, page 4, are provided in the Working Papers. Your instructor will guide you through the following examples.

Journalize the transactions.

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May 1. Received cash from sale of office equipment, $6,000.00. R86. 1. Received cash from sale of supplies, $950.00. R87. 3. Received cash from sale of truck, $7,500.00. R88. 5. Paid cash to all creditors for amounts owed. C116. 6. Distributed loss or gain to Jason Edson, 60%; to Peggy Karam, 40%. M21. 6. Distributed remaining cash to partners. C117 and C118.