Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2023:

Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $680,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively. Due to difficulties, the partners decided to liquidate the partnership. The land and building were sold for $680,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wheaton, Chen, and Smith, respectively.

Required

Prepare the entry to distribute the remaining cash to the partners assuming any deficiencies are paid by the partners.

Transcribed Image Text:

Account balances December 31, 2023................. Cash Building Accum. Deprec. Building $184,000 $824,000 $480,000 Land Accounts Payable $208,000 $128,000 Martha Wheaton, Capital $316,000 Bess Chen, Capital $(52,000) Sam Smith, Capital $344,000