The ABC Partnership decided to terminate its affairs as of December 31, 2018. The following information is taken from the balance sheet that was prepared as of the date of termination:

All noncash assets were sold for $700,000. (Hint: On your worksheet, combine all noncash assets as $1,000,000.) All liabilities were paid. All partners are personally insolvent.

Prepare a worksheet showing sale of assets, payment of liabilities and distribution to partners. Prepare all journal entries. Show all computations.

$ Cash Receivables (net) Inventories Fixed Assets (net) $ 100,000 240,000 180,000 580,000 Liabilities A, Capital (30%) B, Capital (20%) C, Capital (50%) Total Liabilities Capital 80,000 580,000 360,000 80,000 Total Assets $1,100,000 $1,100,000