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.)