David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances asof December 31, 2023:Account balances December 31, 2023Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 onJanuary 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.DavidOlenaAccum.Deprec. AccountsDannyNotes Wallace, Dunn,Lin,Equipment Equipment Payable Payable Capital Capital Capital$19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000CashRequired:1. Complete the schedule. (Negative answers should be indicated by a minus sign.)Account balances December 31, 2023Sale of equipmentBalancePayment of liabilitiesBalanceCashEquipmentAccum.Deprec.Equipment$ 19,300 $ 161,000 $59,000161,000322,000 $$ 78,300 $$ 78,300 $322,000 $AccountsPayable92,000 $92,000184,000 $184,000 $NotesPayable7,300 $ 15,000 $007,300 $ 15,000 $7,300 $ 15,000 $DavidWallace,Capital34,000 $034,000 $34,000 $OlenaDunn,Capital17,000 $017,000 $17,000 $DannyLin,Capital15,000015,00015,000

A Partnership Firm comes into existence when two or more persons agree to do the business and share…

Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.

Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.

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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