The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. \[\begin{array} { | l | r | l | r | } \hline { \text { Assets } } & & { \text { Liabilities } } & \\ \hline \text { Cash } & \$ 15,000 & \text { Accounts Payable } & \$ 15,000 \\ \hline \text { Accounts Receivable } & 12,000 & \text { Other liabilities } & 21,000 \\ \hline \text { Furniture } & 22,000 & \text { Partners' Equity } &\\ \hline \text { Equipment } & 39,000 & \text { Ryan, Capital } & 30,000 \\ \hline \text { Other assets } & \underline { 8,000 } & \text { Peter, Capital } &\underline { 30,000 }\\ \hline \text { Total assets } & \$ 96,000 & \text { Total liabilities and partners' equity } & \underline { \$ 96,000 }\\ \hline \end{array}\] Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.They sold the furniture and equipment for $72,000.Which of the following is the correct journal entry for the sale transaction?

A) \[\begin{array} { | l | l | l | } \hline \text { Cash } & 61,000 & \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 39,000 \\ \hline \end{array}\] B) \[\begin{array} { | l | r | r | } \hline \text { Cash } & 72,000 & \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 39,000 \\ \hline \text { Gain on Disposal } & & 11,000 \\ \hline \end{array}\] C) \[\begin{array} { | c | r | r | } \hline \text { Loss on Disposal } & 11,000 & \\ \hline \text { Cash } & 61,000 & \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 50,000 \\ \hline \end{array}\] D) \[\begin{array} { | c | c | c | } \hline \text { Liquidation account } & 133,000 & \\ \hline \text { Cash } & & 72,000 \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 39,000 \\ \hline \end{array}\] A) \[\begin{array} { | l | l | l | } \hline \text { Cash } & 61,000 & \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 39,000 \\ \hline \end{array}\] B) \[\begin{array} { | l | r | r | } \hline \text { Cash } & 72,000 & \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 39,000 \\ \hline \text { Gain on Disposal } & & 11,000 \\ \hline \end{array}\] C) \[\begin{array} { | c | r | r | } \hline \text { Loss on Disposal } & 11,000 & \\ \hline \text { Cash } & 61,000 & \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 50,000 \\ \hline \end{array}\] D) \[\begin{array} { | c | c | c | } \hline \text { Liquidation account } & 133,000 & \\ \hline \text { Cash } & & 72,000 \\ \hline \text { Furniture } & & 22,000 \\ \hline \text { Equipment } & & 39,000 \\ \hline \end{array}\]

Floyd and Merriam start a partnership business on June 12,2019.Their capital account balances as of December 31,2020 stood as follows: \[\begin{array} { | l | r | } \hline \text { Floyd } & \$ 54,000 \\ \hline \text { Merriam } & 22,000 \\ \hline \end{array}\] Floyd agrees to sell half of his share to Ramelow in exchange for $32,000 cash.Which of the following is the correct journal entry in the books of the firm for the above transfer of interest?

A) \[\begin{array} { |l | c | c | } \hline \text { Cash } & 32,000 & \\ \hline \text { Ramelow, Capital } & & 32,000 \\ \hline \end{array}\] B) \[\begin{array} { | c | c | c | } \hline \text { Floyd, Capital } & 27,000 & \\ \hline \text { Ramelow, Capital } & & 27,000 \\ \hline \end{array}\] C) \[\begin{array} { | l | c | c | } \hline \text { Cash } & 32,000 & \\ \hline \text { Floyd, Capital } & 27,000 & \\ \hline \text { Ramelow, Capital } & & 59,000 \\ \hline \end{array}\] D) \[\begin{array} { | l | r | r | } \hline \text { Cash } & 32,000 & \\ \hline \text { Floyd, Capital } & & 5000 \\ \hline \text { Ramelow, Capital } & & 27,000 \\ \hline \end{array}\] A) \[\begin{array} { |l | c | c | } \hline \text { Cash } & 32,000 & \\ \hline \text { Ramelow, Capital } & & 32,000 \\ \hline \end{array}\] B) \[\begin{array} { | c | c | c | } \hline \text { Floyd, Capital } & 27,000 & \\ \hline \text { Ramelow, Capital } & & 27,000 \\ \hline \end{array}\] C) \[\begin{array} { | l | c | c | } \hline \text { Cash } & 32,000 & \\ \hline \text { Floyd, Capital } & 27,000 & \\ \hline \text { Ramelow, Capital } & & 59,000 \\ \hline \end{array}\] D) \[\begin{array} { | l | r | r | } \hline \text { Cash } & 32,000 & \\ \hline \text { Floyd, Capital } & & 5000 \\ \hline \text { Ramelow, Capital } & & 27,000 \\ \hline \end{array}\]