Peters, Chong, and Aaron are dissolving their partnership. Their partnership agreement allocates each partner an equal share of all income and losses. The current period's ending capital account balances are Peters, $114,000; Chong, $102,000; and Aaron, $(36,000). After all assets are sold and liabilities are paid, there is $180,000 in cash to be distributed. Aaron is unable to pay the deficiency. The journal entry to record the distribution should be:

rev: 06_15_2018_QC_CS-128536

Multiple Choice

Debit Peters, Capital $96,000; debit Chong, Capital $84,000; credit Cash $180,000.

Debit Peters, Capital $114,000; debit Chong, Capital $102,000; credit Cash $216,000.

Debit Peters, Capital $114,000; debit Chong, Capital $66,000; credit Cash $180,000.

Debit Cash $180,000; credit Peters, Capital $60,000; credit Chong, Capital $60,000.

Debit Cash $180,000, debit Aaron, Capital $36,000, credit Peters, Capital $114,000, credit Chong, Capital $102,000.