E 17-7 Statement of partnership liquidation The partnership of Ali, Bev, and Cal became insolvent during 2016, and the partnership ledger shows the following balances after all partnership assets have been converted into cash and all available cash distributed:

Partnership Liquidation 583 Debit Credit Accounts payable $ 30,000 Ali capital 20,000 Bev capital $120,000 Cal capital 70,000

$120,000 $120,000 Profit- and loss-sharing percentages for the three partners are Ali, 30 percent; Bev, 40 percent; and Cal, 30 percent. The personal assets and liabilities of the partners are as follows:

Ali Bev Cal Personal assets $60,000 $110,000 $60,000 Personal liabilities 50,000 60,000 40,000 REQuIRED: Prepare a schedule to show the phaseout of the partnership and final closing of the books if the partnership creditors recover $30,000 from Bev.