The trial balance at December 31, immediately prior to the liquidation of TT Partnership, follows:

Cash		$10,600
Equipment		80,300
Accumulated depreciation - equipment		48,600
Accounts payable		12,400
Teck Tang, Capital		14,200
Zhi Tao, Capital		15,700

The partnership is liquidated on December 31 of the current year and $33,800 cash is received for the equipment. Tang and Tao have a profit and loss ratio of 3:1.

Prepare a liquidation schedule. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

TT PARTERSHIP Liquidation Schedule December 31

Assets

= Liabilities +

Partners' Capital

Cash

Equipment

Accumulated Depreciation Equipment

Accounts Payable

T. Tang Capital

Z. Tao Capital

Total Capital

Account balances prior to liquidation

$

$

$

$

$

$

$

Sale of assets and share of gain

Balances

Payment of liabilities

Balances

Distribution of cash to partners

Final balances

$

$

$

$

$

$

$

Prepare journal entries to:

1)		record the sale of the other assets,
2)		distribute any resulting gain or loss to the capital accounts,
3)		pay the outstanding accounts payable, and
4)		record the final distribution of cash to the partners.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

No.	Account Titles and Explanation	Debit	Credit
(1)	T. Tang, CapitalGain on RealizationAccounts PayableAccumulated Depreciation EquipmentCashLoss on RealizationZ. Tao, CapitalAccounts ReceivableEquipment
	Accumulated Depreciation EquipmentAccounts ReceivableLoss on RealizationGain on RealizationT. Tang, CapitalCashAccounts PayableEquipmentZ. Tao, Capital
	CashGain on RealizationEquipmentAccounts ReceivableAccumulated Depreciation EquipmentT. Tang, CapitalLoss on RealizationZ. Tao, CapitalAccounts Payable
	Accumulated Depreciation EquipmentGain on RealizationCashAccounts ReceivableZ. Tao, CapitalAccounts PayableT. Tang, CapitalEquipmentLoss on Realization
(2)	Loss on RealizationAccounts ReceivableAccumulated Depreciation EquipmentGain on RealizationAccounts PayableCashT. Tang, CapitalZ. Tao, CapitalEquipment
	EquipmentT. Tang, CapitalLoss on RealizationAccounts PayableCashAccounts ReceivableAccumulated Depreciation EquipmentGain on RealizationZ. Tao, Capital
	T. Tang, CapitalCashEquipmentAccounts PayableAccumulated Depreciation EquipmentGain on RealizationAccounts ReceivableLoss on RealizationZ. Tao, Capital
(3)	Gain on RealizationCashEquipmentLoss on RealizationZ. Tao, CapitalAccumulated Depreciation EquipmentAccounts ReceivableT. Tang, CapitalAccounts Payable
	CashAccounts PayableAccumulated Depreciation EquipmentEquipmentGain on RealizationLoss on RealizationZ. Tao, CapitalT. Tang, CapitalAccounts Receivable
(4)	Accumulated Depreciation EquipmentZ. Tao, CapitalAccounts PayableT. Tang, CapitalEquipmentCashLoss on RealizationAccounts ReceivableGain on Realization
	Accumulated Depreciation EquipmentLoss on RealizationAccounts ReceivableZ. Tao, CapitalT. Tang, CapitalCashEquipmentAccounts PayableGain on Realization
	Accounts PayableGain on RealizationEquipmentCashT. Tang, CapitalZ. Tao, CapitalLoss on RealizationAccumulated Depreciation EquipmentAccounts Receivable