The Redtail Partnership agrees to dissolve. The cash balance after selling all assets and paying all liabilities is $56,000. The final capital account balances are: Paulson, $33,000; Gray, $27,000; and Chang, ($4,000). Chang agrees to pay $4,000 cash from personal funds to settle his deficiency. The partners have agreed to share income and losses equally. Prepare the journal entries to record the transactions required to dissolve this partnership.

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The Answer of The Redtail Partnership agrees to dissolve. The cash balance after selling all assets and paying all liabilities is $56,000. The final capital account balances are: Paulson, $33,000; Gray, $27,000; and Chang, ($4,000). Chang agrees to pay $4,000 cash from personal funds to settle his deficiency. The partners have agreed to share income and losses equally. Prepare the journal entries to record the transactions required to dissolve this partnership.

The Redtail Partnership Agrees to Dissolve