Book Print erences Exercise 11-14 Liquidation of a partnership LO5 David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2020: Account balances December 31, 2020 Cash $38,200 Accum. David Olena Deprec. Accounts Notes Wallace, Dunn, Equipment Equipment Payable Payable Capital $188,000 Capital Capital $101,000 $8,200 $24,000 $43,000 $26,000 $24,000 Danny Lin, Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $68,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. Required: 1. Complete the schedule. (Negative answers should be Indicated by a minus sign.) Cash Equipment Accum. Deprec Equipment David Olena Accounts Payable Danny Notes Payable Wallace, Dunn, Lin, Capital Capital Capital Account balances December 31, 2020 $ 38.200 $ 188,000 S 101.000 S 8,200 $24,000 $ 43,000 $ 26,000 $ 24,000 Sale of equipment Balance 68,000 $106,200 $ (188,000) (101,000) 0 0 $ 0 $ Payment of liabilities Balance (19,000) 0 0 8,200 $ 24,000 S (8,200) (9,500) 33.500 S (4.750) (4.750) (2,400) (33,500) 21,250 S (21,250) 19,250 (19,250) $ 87,200 S 0 S 0 S 0 $ 21,600 S 0 S 0 S 2. Prepare the liquidation entries (sale of equipment, allocation of gain loss, bayment of creditors, final distribution of cash). View transaction list View journal entry worksheet Next 0 ences 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction list View journal entry worksheet No Dalke General Journal Jan 01, 2021 Accumulated depreciation, equipment Cash Equipment 2 Jan 01, 2021 David Wallace, capital Olena Dunn, capital Danny Lin, capital Debit Credit 101,000 58,000 19.000 188,000 9.500 4780 4,750 19.000 3 Jan 01, 2021 Accounts payable 8.200 Notes payable 24.000 Cash 32.200 4 Jan 01.2021 David Wallace, capital 33.500 Olena Dunn, capital Danny Lin, capital Cash 21.250 19.250 17.400