Trish Craig and Ted Smith have a partnership and share income and losses in a 3:1 ratio. They decide to liquidate their partnership on December 31, 2014, when the balance sheet shows the following:

Required Prepare the entries on December 31, 2014, to record the liquidation under each of the following independent assumptions:
a. Property, plant and equipment are sold for $720,000.
b. Property, plant and equipment are sold for$140,000.

Craig and Smith Consulting Balance Sheet December 31, 2014 Assets Liabilities 91,200 Accounts payable Equity Cash $ 50,400 Property, plant and equipment$513,600 Less: Accumulated depreciation Total assets 199,200 314,400 Trish Craig, c .. $244,800 110,400 $405,600 Ted Smith, capita Total equit Total liabilities and equity.. 355,200 $405,600