London, Ramirez, and Toney, who share income and loss in a 3:2:1 ratio, plan to liquidat...

London, Ramirez, and Toney, who share income and loss in a 3:2:1 ratio, plan to liquidate their partnership. At liquidation, their balance sheet appears as follows.

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) $605,400; (2) $474,000; (3) $301,200 and any partners with capital deficits

pay in the amount of their deficits; and (4) $271,200 and the partners have no assets other than those invested

in the partnership. (Round amounts to the nearest dollar.)