David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed the following account balances as of December 31, 2023:

Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $60,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.

Required

1. Complete the schedule.

2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash).

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Account balances December 31, 2023....... Sale of Equipment......... Payment of Liabilities........ Balance. Cash Equipment $21,400 $164,000 Accum. Deprec. Accounts Equipment Payable $93,000 $7,400 Notes Payable $16,000 David Wallace, Capital $35,000 Olena Dunn, Capital $18,000 Danny Lin, Capital $16,000