David Wallace, Olena Dunn, and Danny Lin were partners in a commercial architect firm and showed...

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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 Dunn, Danny Lin, Deprec. Accounts Notes Wallace, Cash $29,800 Equipment Equipment Payable Payable Capital Capital Capital $176,000 $97,000 $7,800 $20,000 $39,000 $22,000 $20,000 Account balances December 31, 2020 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $64,000 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.) Accounts Accum. Deprec. Equipment David Wallace, Cash Olena Dunn, Notes Payable Equipment Payable Capital Capital $ 29,800 $ 176,000 $ 97,000 $ 7,800 $20,000 $ 39,000 $ Account balances December 31, 2020 Sale of equipment Balance Payment of liabilities Balance 22,000 $ le. (Negative answers should be indicated by a minus sign.) Accounts Notes Cash Equipment Accum. Deprec. Equipment Payable Payable er 31, 2020 $ 29,800 $ 176,000 $ 97,000 $ 7,800 $20,000 $ David Wallace, Capital 39,000 $ Olena Dunn, Capital 22,000 $ Danny Lin, Capital 20,000 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction list Journal entry worksheet 1 2 3 4 Record the sale of equipment. Note: Enter debits before credits. Date Debit Credit Jan 01, 2021 General Journal 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 Dunn, Danny Lin, Deprec. Accounts Notes Wallace, Cash $29,800 Equipment Equipment Payable Payable Capital Capital Capital $176,000 $97,000 $7,800 $20,000 $39,000 $22,000 $20,000 Account balances December 31, 2020 Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $64,000 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.) Accounts Accum. Deprec. Equipment David Wallace, Cash Olena Dunn, Notes Payable Equipment Payable Capital Capital $ 29,800 $ 176,000 $ 97,000 $ 7,800 $20,000 $ 39,000 $ Account balances December 31, 2020 Sale of equipment Balance Payment of liabilities Balance 22,000 $ le. (Negative answers should be indicated by a minus sign.) Accounts Notes Cash Equipment Accum. Deprec. Equipment Payable Payable er 31, 2020 $ 29,800 $ 176,000 $ 97,000 $ 7,800 $20,000 $ David Wallace, Capital 39,000 $ Olena Dunn, Capital 22,000 $ Danny Lin, Capital 20,000 2. Prepare the liquidation entries (sale of equipment, allocation of gain/loss, payment of creditors, final distribution of cash). View transaction list Journal entry worksheet 1 2 3 4 Record the sale of equipment. Note: Enter debits before credits. Date Debit Credit Jan 01, 2021 General Journal

Answer rating: 100% (QA)

1 Cash Equipment accudepreciation Accounts payable Notes Payable DavidCapital Olena capit... View the full answer