Exercise 11-14 Liquidation of a partnership LOS 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 $173,000 $96,000 Cash $27,700 Accounts Payable $7,700 David Wallace Capital $38,000 Notes Payable $19,000 Account balances December 31, 2020 Olene Dunn Capital $21,000 Donny Lin, Capital $19,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $63,000 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 Accounts Notes David Olena Cash Equipment Deprec Wallace Dunn, Equipment Payable Payable Capital Capital $ 27.700 S 173,000 $ 95,000 $ 7.700 $ 19,000 $ 38,000 $ 21,000 $ Danny Lin, Capital 19.000 Account balances December 31, 2020 Sale of equipment Balance Payment of lines Balance $ 27.700 5 173,000 $ 96,000 $ 7,700 S 19.000 $ 38,000S 21,000 $ 19,000 $ 27.700 173.000 $ 98,000 $ 7,700 S 19.000 S 38.000 21000 5 19.000 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction fist Journal entry worksheet 1 2 3 4 > Record the sale of equipment. Note Enter debits before credits General Journal Date Jan 01, 2021 Debit Credit Record entry Clear entry View General mal