Les Wallace, Mavis Dunn, and Sig Jensen were partners and showed the following account balances as of December 31, 2014:
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $56,000 on January 1, 2015. The partners share any income (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Jensen respectively.
Required Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, and final distribution ofcash).