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 Equipment Accum. Deprec. Equipment Accounts Payable Notes Payable David Wallace, Capital Olena Dunn, Capital Danny Lin, Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. The Schedule is complete, however, I'm struggling with the journal entries. I attached images of the completed schedule to assist with the journal entries. 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). 1 Record the sale of equipment. 2 Record the distribution of gain/loss on sale of equipment to partners. 3 Record the payment to creditors. 4 Record the distribution of remaining cash to partners.
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 Equipment Accum. Deprec. Equipment Accounts Payable Notes Payable David Wallace, Capital Olena Dunn, Capital Danny Lin, Capital Account balances December 31, 2020 $ 40,300 $ 191,000 $ 102,000 $ 8,300 $ 25,000 $ 44,000 $ 27,000 $ 25,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively. The Schedule is complete, however, I'm struggling with the journal entries. I attached images of the completed schedule to assist with the journal entries. 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). 1 Record the sale of equipment. 2 Record the distribution of gain/loss on sale of equipment to partners. 3 Record the payment to creditors. 4 Record the distribution of remaining cash to partners.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 9RE: Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for...
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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 | Equipment | Accum. Deprec. Equipment |
Accounts Payable |
Notes Payable |
David Wallace, Capital |
Olena Dunn, Capital |
Danny Lin, Capital |
|||||||||||||||||||||||||
Account balances December 31, 2020 | $ | 40,300 | $ | 191,000 | $ | 102,000 | $ | 8,300 | $ | 25,000 | $ | 44,000 | $ | 27,000 | $ | 25,000 | ||||||||||||||||
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 on January 1, 2021. The partners share any
The Schedule is complete, however, I'm struggling with the
2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).
-
1Record the sale of equipment.
-
2Record the distribution of gain/loss on sale of equipment to partners.
-
3Record the payment to creditors.
-
4Record the distribution of remaining cash to partners.
![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.
David
Olena
Deprec.
Equipment Equipment
$102,000
Wallace,
Сapital
$44,000
Danny
Lin,
Сapital
$25,000
Accounts
Notes
Dunn,
Саpital
$27,000
Cash
Payable
$8,300
Payable
$25,000
Account balances December 31, 2020
$40,300
$191,000
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 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.
David
Olena
Danny
Lin,
Capital
Accounts
Notes
Equipment
Dunn,
Capital
Cash
Deprec.
Equipment
Wallace,
Capital
Payable
Payable
Account balances December 31, 2020
$ 40,300 $
191,000 $
102,000 $
8,300 $ 25,000 $
44,000 $
27,000 $
25,000
Sale of equipment
69,000
(191,000)
(102,000)
(10,000)
(5,000)
(5,000)
Balance
$ 109,300
$
$
8,300 $ 25,000
$
34,000 $
22,000
$
20,000
Payment of liabilities
(33,300)
(8,300)
(25,000)
Balance
$ 76,000 $
$
$
$
34,000 $
22,000
$
20,000
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff9b72601-d964-491f-8e7f-00efd14545d2%2F54287847-87cd-4e18-b0d9-643042c8b08a%2Fk2a9sdh_processed.png&w=3840&q=75)
Transcribed Image Text: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.
David
Olena
Deprec.
Equipment Equipment
$102,000
Wallace,
Сapital
$44,000
Danny
Lin,
Сapital
$25,000
Accounts
Notes
Dunn,
Саpital
$27,000
Cash
Payable
$8,300
Payable
$25,000
Account balances December 31, 2020
$40,300
$191,000
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 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.
David
Olena
Danny
Lin,
Capital
Accounts
Notes
Equipment
Dunn,
Capital
Cash
Deprec.
Equipment
Wallace,
Capital
Payable
Payable
Account balances December 31, 2020
$ 40,300 $
191,000 $
102,000 $
8,300 $ 25,000 $
44,000 $
27,000 $
25,000
Sale of equipment
69,000
(191,000)
(102,000)
(10,000)
(5,000)
(5,000)
Balance
$ 109,300
$
$
8,300 $ 25,000
$
34,000 $
22,000
$
20,000
Payment of liabilities
(33,300)
(8,300)
(25,000)
Balance
$ 76,000 $
$
$
$
34,000 $
22,000
$
20,000
%24
%24
![2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).
View transaction list
Record the sale of equipment.
>
Record the distribution of gain/loss on sale of equipment
to partners.
2
3
Record the payment to creditors.
4
Record the distribution of remaining cash to partners.
Credit
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff9b72601-d964-491f-8e7f-00efd14545d2%2F54287847-87cd-4e18-b0d9-643042c8b08a%2Fpjztga_processed.png&w=3840&q=75)
Transcribed Image Text:2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).
View transaction list
Record the sale of equipment.
>
Record the distribution of gain/loss on sale of equipment
to partners.
2
3
Record the payment to creditors.
4
Record the distribution of remaining cash to partners.
Credit
Note :
= journal entry has been entered
Record entry
Clear entry
View general journal
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