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 AccountsPayable NotesPayable DavidWallace,Capital OlenaDunn,Capital DannyLin,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).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 asof December 31, 2020:Accum.DavidOlenaDeprec.Equipment Equipment$102,000Wallace,Сapital$44,000DannyLin,Сapital$25,000AccountsNotesDunn,Саpital$27,000CashPayable$8,300Payable$25,000Account balances December 31, 2020$40,300$191,000Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $69,000 onJanuary 1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.)Accum.DavidOlenaDannyLin,CapitalAccountsNotesEquipmentDunn,CapitalCashDeprec.EquipmentWallace,CapitalPayablePayableAccount balances December 31, 2020$ 40,300 $191,000 $102,000 $8,300 $ 25,000 $44,000 $27,000 $25,000Sale of equipment69,000(191,000)(102,000)(10,000)(5,000)(5,000)Balance$ 109,300$$8,300 $ 25,000$34,000 $22,000$20,000Payment of liabilities(33,300)(8,300)(25,000)Balance$ 76,000 $$$$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 listRecord the sale of equipment.>Record the distribution of gain/loss on sale of equipmentto partners.23Record the payment to creditors.4Record the distribution of remaining cash to partners.CreditNote := journal entry has been enteredRecord entryClear entryView general journal

Name: David Wallace, Olena Dunn, and Danny Lin were partners in a commercial
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Description: 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 AccountsPayable NotesPayable DavidWallace,Capital OlenaDun

Liquidation of Partnership - Liquidation of partnership is the process of selling all the assets…

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 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:
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

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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