Dobbins, Vickerman, and Walsh are liquidating their partnership. Before selling the assets and paying the liabilities, the capital balances are Dobbins $$45,000$; Vickerman, $$26,000$; and Walsh, $$21,000.$ The profit$-$and$-$loss$-$sharing ratio has been $2$:$2$:$1$ for Dobbins, Vickerman, and Walsh, respectively. The partnership has $$75,000$ cash, $$42,000$ non$-$cash assets, and $$25,000$ accounts payable.

Read the requirements.

Requirement $1.$ Assuming the partnership sells the non$-$cash assets for $$55,000,$ record the journal entries for the sale $of$ non$-$cash assets, allocation $of$ gain $or$ loss $on$ liquidation, the payment $of$ the outstanding liabilities, and the distribution $of$ remaining cash $to$ partners. $(Record$ debits first, then credits. Select the explanation $on$ the last line $of$ the journal entry table.$)$

Journalize the sale $of$ the non$-$cash assets for $$55,000.$

Date

Accounts and Explanation