Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Double check work in first photo please and thank you. David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and
Double check work in first photo please and thank you.
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: Cash $36,100 Accum. Deprec. Equipment $100,000 Equipment $185,000 Accounts Payable $8,100 Account balances December 31, 2020 David Wallace, Capital $42,000 Notes Payable $23,000 Olena Dunn, Capital $25,000 Danny Lin, Capital $23,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $67,000 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 $ 100 000 Accounts Payable Notes Payable David Wallace, Capital Olena Dunn, Capital 25 000 Danny Lin, Capital 23 000 $ 36,100 S Account balances December 31, 2020 Sale of equipment 185,000 $ 8.100 S 23.000 $ 42.000 $ $ (185,000) (100 000) 0 0 0 0 67,000 $ 103,100 $ 0 Balance 0 $ 0 $ 8 100 $ 23 000 $ 42.000 $ $ 23,000 0 0 Payment of liabilities Balance 0 (8,100) (6 000) 25 000 (7.000) 18.000 (23 000) 0 $ 103,100 $ 0 $ 0 $ (5,000) 18.000 0 $ 36.000 $ 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction list X Record the sale of equipment. > Record the distribution of gain/loss on sale of equipment to partners. 3 Record the payment to creditors. Record the distribution of remaining cash to partners. Credit Note: = journal entry has been enteredStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started