Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 18CE
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Transcribed Image Text: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:
Account balances December 31, 2023
Due to several unprofitable periods, the partners decided to liquidate the partnership. The equipment was sold for $59,000 on
January 1, 2024. The partners share any profit (loss) in the ratio of 2:1:1 for Wallace, Dunn, and Lin, respectively.
David
Olena
Accum.
Deprec. Accounts
Danny
Notes Wallace, Dunn,
Lin,
Equipment Equipment Payable Payable Capital Capital Capital
$19,300 $161,000 $92,000 $7,300 $15,000 $34,000 $17,000 $15,000
Cash
Required:
1. Complete the schedule. (Negative answers should be indicated by a minus sign.)
Account balances December 31, 2023
Sale of equipment
Balance
Payment of liabilities
Balance
Cash
Equipment
Accum.
Deprec.
Equipment
$ 19,300 $ 161,000 $
59,000
161,000
322,000 $
$ 78,300 $
$ 78,300 $
322,000 $
Accounts
Payable
92,000 $
92,000
184,000 $
184,000 $
Notes
Payable
7,300 $ 15,000 $
0
0
7,300 $ 15,000 $
7,300 $ 15,000 $
David
Wallace,
Capital
34,000 $
0
34,000 $
34,000 $
Olena
Dunn,
Capital
17,000 $
0
17,000 $
17,000 $
Danny
Lin,
Capital
15,000
0
15,000
15,000
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