TB MC Ou$.12-107($Algo$)$ Peters, Chong, and Aaron are...

Aeters, 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, $$120,000,$ Charnal entry to record the distribution $$(39,000).$

There is $$189,000$ in cash to be distributed. Aaron is unable to pay the deficiency. The

Multiple Choice

Debit Cash $$189,000$; credit Peters, Capital $$63,000$; credit Chong, Capital $$63,000.$

Debit Peters, Capital $$120,000$; debit Chong, Capital $$108,000$; credit Cash $$228,000.$

Debit Peters, Capital $$100,500$; debit Chong, Capital $$88,500$; credit Cash $$189,000.$

Debit Cash $$189,000$; debit Aaron, Capital $$39,000$; credit Peters, Capital $$120,000$; credit Chong, Capital $$108,000.$

Debit Peters, Capital $$120,000$; debit Chong, Capital $$69,000$; credit Cash $$189,000.$