Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Lewis, $76,580 Cr.; Zapata, $35,050 Cr.; Fowler, $16,980 Dr.

C. On December 31, journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. Refer to the Chart of Accounts for exact wording of account titles. Sorry, the format of the question made it a bit tricky.