i Saved Exercise 11-14 Liquidation of a partnership LO5 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: Account balances December 31, 2020 Accum. David Olena Deprec. Accounts Notes Wallace, Dunn, Cash Equipment Equipment Payable Payable Capital Capital Capital $38,200 $188,000 $101,000 $8,200 $24,000 $43,000 $26,000 $24,000 Danny Lin, Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $68,000 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 David Olena Danny Accounts Payable Notes Payable Wallace, Capital Dunn, Lin, Capital Capital Account balances December 31, 2020 Sale of equipment $ 38,200 $ 188,000 S Balance 68,000 $106,200 S (188,000) 101,000 $ (101,000) 8,200 S 24,000 S 43,000 S 286,000 S 24,000 O O (9,500) (4.750) (4,750) 0 S Payment of liabilities Balance (19,000) 01 0 $ 0 8,200 S 24,000 S (8,200) (2.400) 33,500 S 21,250 S 19,250 0 $ 87.200 S 0 S 0 S 0 S 21.600 S 33,500 S 0 21,250 $ 0 19.250 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). ts eBook Print References Mc Graw 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 1 3 Record the sale of equipment. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01, 2021 Cash 68,000 Accumulated depreciation, equipment 101,000 Equipment 19,000 188,000 Record entry Clear entry View general journal Prev Movt