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: Accum. Deprec. Equipment Equipment $179,000 $90,000 Accounts Payable $7,900 David Wallace, Capital $40,000 Notes Payable $21,800 Cash $31,900 Olena Dunn, Capital $23,000 Danny Lin, Capital $21,800 Account balances December 31, 2020 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $65.000 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.) Accum. Cash Equipment Accounts Payable $ 7.900 David Wallace Capital Notes Payable $ 21,000 Deprec. Equipment $ 98.000 Olena Dunn, Capital Danny Lin, Capital $ 31,900 $ 179.000 $ 40.000 $ 23,000 $ 21,000 Account balances December 31, 2020 Sale of equipment Balance Payment of liabilities Balance 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction llat Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits General Journal Debit Credit Date Jan 01.2021 Record entry Clear entry View general Journal 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: Accum. Deprec. Equipment Equipment $179,000 $90,000 Accounts Payable $7,900 David Wallace, Capital $40,000 Notes Payable $21,800 Cash $31,900 Olena Dunn, Capital $23,000 Danny Lin, Capital $21,800 Account balances December 31, 2020 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $65.000 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.) Accum. Cash Equipment Accounts Payable $ 7.900 David Wallace Capital Notes Payable $ 21,000 Deprec. Equipment $ 98.000 Olena Dunn, Capital Danny Lin, Capital $ 31,900 $ 179.000 $ 40.000 $ 23,000 $ 21,000 Account balances December 31, 2020 Sale of equipment Balance Payment of liabilities Balance 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction llat Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits General Journal Debit Credit Date Jan 01.2021 Record entry Clear entry View general Journal
