Response to the following problem:
Lasure. Ramirez, and Toney. who share income and loss in a 2:1:2 ratio, plan to liquidate their partner- ship. At liquidation, their balance sheet appears as follows.
LASURE, RAMIREZ, AND TONEY
Balance Sheet
January 18
Assets Liabilities and Equity
Cash $348,600 Accounts payable $342,600
Equipment 617,200 Lasure, Capital 300,400
Ramirez, Capital 195,800
Toney, Capital 127,000
Total assets $965,800 Total liabilities and equity $965,800
Required:
Prepare journal entries for
(a) the sale of equipment.
(b) the allocation of its gain or loss.
(c) the payment of liabilities at book value, and
(d) the distribution of cash in each of the following separate cases:
Equipment is sold for (1) $650.000; (2) $530,000; (3) $200,0000 and any partners with capital deficits pay in the amount of their deficits: and (4) S150.00 and the partners have no assets other than those invested in the partnership. (Round amounts to the nearest dollar.)