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. Accounts Equipment Equipment Payable $206,000 $107,000 $8,800 Cash $50,800 Notes Payable $30,000 David Wallace, Capital $49,000 olena Dunn, Capital $32,000 Danny Lin, Capital $30,000 Account balances December 31, 2020 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $74,000 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. David Olena Accounts Notes Deprec. Payable Dunn, Payable Wallace, Equipment Capital Capital $ 107,000 $ 8,800 $ 30,000 $ 49,000 $ 32,000 $ Danny Lin, Capital 30,000 $ 50.800 $ 206,000 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 list Journal entry worksheet Record the sale of equipment. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2021