Ken Danolo withdrew cash of $148,000 for personal use, and Jim Goldman withdrew cash of $120,000 during the year. Using the data from situation (c) in Exercise 12-5, journalize the entries to close to each Capital account (a) the net income to the partners, and (b) the partners' Withdrawal accounts. Explanations are not required. Indicate the amount of increase or decrease in each partner's Capital balance. What was the overall effect on partnership capital?

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EXHIBIT 12-5 Partnership Liquidation-Sale of Assets at a Gain Capital Lauren Andrews Benroudi (20%) + Cash + Noncash Assets = Liabilities + (60%) + (20%) Balances before sale $ 10,000 $ 40,000 $ 20,000 $ 10,000 of assets $90,000 $30,000 Step 1, Sale of assets and sharing of gain 12,000 150,000 (90,000) 36,000 12,000 160,000 22,000 Balances 30,000 76,000 32,000 Step 2, Payment of liabilities (30,000) (30,000) 76,000 Balances 130,000 32,000 22,000 Step 3, Disbursement of cash to partners (32,000) (130,000) (76,000) (22,000) Balances %24