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A partnership has the following balance sheet at December 31, 2018. Cash $9,000 Accounts Payable $50,000 Land 120,000 Blair, Capital 45,000 Total Assets $129,000 Smith,
A partnership has the following balance sheet at December 31, 2018.
| Cash | $9,000 | Accounts Payable | $50,000 |
| Land | 120,000 | Blair, Capital | 45,000 |
| Total Assets | $129,000 | Smith, Capital | 34,000 |
|
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| Total Liabilities and Partners' Equity | $129,000 |
The partnership liquidates and sells its land for $100,000. All liabilities are liquidated at book value.
Required:
Prepare the journal entries to liquidate the partnership on December 31, 2018.
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