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J$.$ Morgan and M$.$ Halsted are partners who share income and loss in a $3$:$1$ ratio. After several unprofitable periods, the two partners decided to liquidate their partnership. The current period's income or loss is closed to the partners' capital accounts according to the sharing agreement. Immediately before liquidation, the partnership balance sheet shows: land, $$100,000$; accounts payable, $$80,000$; J$.$ Morgan, Capital, $$15,000$; and M$.$ Halsted, Capital, $$5,000.$ On January $15,$ the land was sold for $$110,000$ cash. On January $16,$ the partnership settled its liabilities. On January $31,$ the remaining cash was distributed to the partners. Prepare the January $15$ journal entry for the partnership to record the allocation of the gain or loss from liquidation to the partners.

Journal entry worksheet

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J$.$ Morgan and M$.$ Halsted are partners who share income and loss in a $3$:$1$ ratio. After several unprofitable periods, the two partners decided to liquidate their partnership. The current period's income or loss is closed to the partners' capital accounts according to the sharing agreement. Immediately before

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$Jan $15,.,,],[,,,]]$

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