1.Orr, Hamilton and Talbot are partners with capital balances of $75 000, $31000 and $80 000, respectively. On October 1, Orr decides to leave the partnership. Hamilton and Talbot each pay $45 000 of their personal funds to Orr and receive 50% of his equity.

2.Levy, Smith and Gretzky are partners with in a technology consulting business. They have capital balances of$35 000, $25 000 and $12 000 respectively. They have an income ratio of 2:3:5. The partnership has the following assets and liabilities: Cash $20 000; Accounts Receivable $7 000; Computer Equipment $60 000; Accumulated Amortization - Computer Equipment $ 40000; Note Payable $15 000. On December 1, the partners decide to liquidate the assets and close the partnership. They manage to collect all of the Accounts Receivable but could get only $6200 for the computer equipment.

a)Show the entries to record the sale of the assets, collection of accounts receivable, the payment of the liabilities.

b)Show the entry to allocate the loss to the partners.