At December 31, Oriole Company has cash of $30,500, equipment of $141,000, accumulated depreciation of $36,600, accounts payable of $52,750, and the following partners capital balances H Bayer $59,000 and J Leech $23,150 The partnership is liquidated on December 31 of the current year and $125,000 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 H Bayer, CapitalEquipmentGain on RealizationCashAccumulated Depreciation H Bayer, CapitalGain on RealizationAccumulated DepreciationCashEquipment EquipmentGain on RealizationCashAccumulated DepreciationH Bayer, Capital Gain on RealizationH Bayer, CapitalAccumulated DepreciationCashEquipment (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 J Leech, CapitalJ Leech, DrawingsGain on RealizationCashH Bayer, Capital Gain on RealizationJ Leech, DrawingsJ Leech, CapitalCashH Bayer, Capital J Leech, CapitalGain on RealizationH Bayer, CapitalCashJ 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 CashJ Leech, DrawingsAccounts PayableGain on RealizationJ Leech, Capital Gain on RealizationAccounts PayableJ Leech, DrawingsJ Leech, CapitalCash (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 J Leech, CapitalCashH Bayer, DrawingsH Bayer, CapitalGain on Realization H Bayer, CapitalGain on RealizationJ Leech, CapitalH Bayer, DrawingsCash CashGain on RealizationJ Leech, CapitalH Bayer, CapitalH Bayer, Drawings (To record final distribution to partners )

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At December 31, Oriole Company has cash of $30,500, equipment of $141,000, accumulated depreciation of $36,600, accounts payable of $52,750, and the following partners capital

At December 31, Oriole Company has cash of $30,500, equipment of $141,000, accumulated depreciation of $36,600, accounts payable of $52,750, and the following partners capital balances: H. Bayer $59,000 and J. Leech $23,150. The partnership is liquidated on December 31 of the current year and $125,000 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	H. Bayer, CapitalEquipmentGain on RealizationCashAccumulated Depreciation
	H. Bayer, CapitalGain on RealizationAccumulated DepreciationCashEquipment
	EquipmentGain on RealizationCashAccumulated DepreciationH. Bayer, Capital
	Gain on RealizationH. Bayer, CapitalAccumulated DepreciationCashEquipment
	(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	J. Leech, CapitalJ. Leech, DrawingsGain on RealizationCashH. Bayer, Capital
	Gain on RealizationJ. Leech, DrawingsJ. Leech, CapitalCashH. Bayer, Capital
	J. Leech, CapitalGain on RealizationH. Bayer, CapitalCashJ. 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	CashJ. Leech, DrawingsAccounts PayableGain on RealizationJ. Leech, Capital
	Gain on RealizationAccounts PayableJ. Leech, DrawingsJ. Leech, CapitalCash
	(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	J. Leech, CapitalCashH. Bayer, DrawingsH. Bayer, CapitalGain on Realization
	H. Bayer, CapitalGain on RealizationJ. Leech, CapitalH. Bayer, DrawingsCash
	CashGain on RealizationJ. Leech, CapitalH. Bayer, CapitalH. Bayer, Drawings
	(To record final distribution to partners.)