2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).View transaction listJournal entry worksheet123 4Record the sale of equipment.Note: Enter debits before credits.DateGeneral JournalDebitCreditJan 01, 2021Record entryClear entryView general journal Exercise 11-14 Liquidation of a partnership LO5David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances asof December 31, 2020:Accum.DavidOlenaDannyDeprec.Equipment Equipment Payable$90,000Wallace,Capital$32,000Lin,Capital$13,000AccountsNotesDunn,Capital$15,000CashPayable$13,000Account balances December 31, 2020$15,100$155,000$7,100Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $57,000 on January1, 2021. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.Required:1. Complete the schedule. (Negative answers should be indicated by a minus sign.)Аccum.DavidOlenaDannyLin,CapitalAccountsNotesCashEquipmentDeprec.EquipmentWallace,СapitalDunn,CapitalPayablePayableAccount balances December 31, 2020$ 15,100155,000$90,000$7,100$ 13,00032,000$15,000 $13,000Sale of equipmentBalancePayment of liabilitiesBalance

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

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: Accum. David Olena Deprec. Equipment Equipment Payable $90,000 Wallace, Capital $32,000 Dunn, Capital $15,000 Danny Lin, Capital $13,000 Accounts Notes Cash $7,100 Payable $13,000 Account balances December 31, 2020 $15,100 $155,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $57,000 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. Deprec. Equipment Danny Lin, Capital David Olena Accounts Notes Cash Equipment Wallace, Capital Dunn, Capital Payable Payable Account balances Dec 31, 2020 $ 15,100 155,000 $ 90,000 7,100 $ 13,000 2$ 32,000 15,000 $ 13,000 Sale of equipment Balance Payment of liabilities Balance

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: Accum. David Olena Deprec. Equipment Equipment Payable $90,000 Wallace, Capital $32,000 Dunn, Capital $15,000 Danny Lin, Capital $13,000 Accounts Notes Cash $7,100 Payable $13,000 Account balances December 31, 2020 $15,100 $155,000 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $57,000 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. Deprec. Equipment Danny Lin, Capital David Olena Accounts Notes Cash Equipment Wallace, Capital Dunn, Capital Payable Payable Account balances Dec 31, 2020 $ 15,100 155,000 $ 90,000 7,100 $ 13,000 2$ 32,000 15,000 $ 13,000 Sale of equipment Balance Payment of liabilities Balance

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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