At December 31, Blossom Company has cash of $28,800, equipment of $143,000, accumulated depreciation of $37,100, accounts payable of $55,170, and the following partners capital balances H Bayer $59,000 and J Leech $20,530 The partnership is liquidated on December 31 of the current year and $124,000 cash is received for the equipment Bayer and Leech share profits and losses equally Prepare the entry to record the sale of the equipment (Credit account titles are automatically indented when the amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Dec 31 Gain on RealizationCashAccumulated DepreciationH Bayer, CapitalEquipment CashAccumulated DepreciationGain on RealizationH Bayer, CapitalEquipment Gain on RealizationCashEquipmentAccumulated DepreciationH Bayer, Capital Accumulated DepreciationCashH Bayer, CapitalGain on RealizationEquipment (To record realization of assets ) Prepare the entry to record the allocation to the partners of the gain or loss on liquidation (Credit account titles are automatically indented when the amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Dec 31 H Bayer, CapitalJ Leech, CapitalCashGain on RealizationJ Leech, Drawings H Bayer, CapitalCashJ Leech, CapitalGain on RealizationJ Leech, Drawings H Bayer, CapitalJ Leech, CapitalGain on RealizationCashJ Leech, Drawings (To allocate gain on realization ) Prepare the entry to record the payment of creditors (Credit account titles are automatically indented when the amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Dec 31 J Leech, DrawingsJ Leech, CapitalGain on RealizationAccounts PayableCash Gain on RealizationAccounts PayableCashJ Leech, DrawingsJ Leech, Capital (Payment on account ) Prepare the entry to record the distribution of cash to the partners (Credit account titles are automatically indented when the amount is entered Do not indent manually ) Date Account Titles and Explanation Debit Credit Dec 31 Gain on RealizationH Bayer, CapitalH Bayer, DrawingsJ Leech, CapitalCash J Leech, CapitalGain on RealizationCashH Bayer, CapitalH Bayer, Drawings Gain on RealizationH Bayer, DrawingsH Bayer, CapitalCashJ Leech, Capital (To record final distribution to partners )

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At December 31, Blossom Company has cash of $28,800, equipment of $143,000, accumulated depreciation of $37,100, accounts payable of $55,170, and the following partners capital

At December 31, Blossom Company has cash of $28,800, equipment of $143,000, accumulated depreciation of $37,100, accounts payable of $55,170, and the following partners capital balances: H. Bayer $59,000 and J. Leech $20,530. The partnership is liquidated on December 31 of the current year and $124,000 cash is received for the equipment. Bayer and Leech share profits and losses equally.

Prepare the entry to record the sale of the equipment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Gain on RealizationCashAccumulated DepreciationH. Bayer, CapitalEquipment
	CashAccumulated DepreciationGain on RealizationH. Bayer, CapitalEquipment
	Gain on RealizationCashEquipmentAccumulated DepreciationH. Bayer, Capital
	Accumulated DepreciationCashH. Bayer, CapitalGain on RealizationEquipment
	(To record realization of assets.)

Prepare the entry to record the allocation to the partners of the gain or loss on liquidation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	H. Bayer, CapitalJ. Leech, CapitalCashGain on RealizationJ. Leech, Drawings
	H. Bayer, CapitalCashJ. Leech, CapitalGain on RealizationJ. Leech, Drawings
	H. Bayer, CapitalJ. Leech, CapitalGain on RealizationCashJ. Leech, Drawings
	(To allocate gain on realization.)

Prepare the entry to record the payment of creditors. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	J. Leech, DrawingsJ. Leech, CapitalGain on RealizationAccounts PayableCash
	Gain on RealizationAccounts PayableCashJ. Leech, DrawingsJ. Leech, Capital
	(Payment on account.)

Prepare the entry to record the distribution of cash to the partners. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Gain on RealizationH. Bayer, CapitalH. Bayer, DrawingsJ. Leech, CapitalCash
	J. Leech, CapitalGain on RealizationCashH. Bayer, CapitalH. Bayer, Drawings
	Gain on RealizationH. Bayer, DrawingsH. Bayer, CapitalCashJ. Leech, Capital
	(To record final distribution to partners.)