The ABC Partnership is to be liquidated. The ledger shows the following:

Cash $ 50,000

Noncash Assets 200,000

Liabilities 50,000

A, Capital 85,000

B, Capital 90,000

C, Capital 25,000

A, B, and C's income ratios are 6:3:1, respectively. The non-cash assets are sold for $140,000.

Instructions

1. Prepare a schedule of liquidation using the following chart:

Cash NC assets Liabilities A, Cap B, Cap C, Cap

Balance

sell assets

Balance

pay liabilities

balance

distribute cash

balance

2. Prepare journal entries to show all the steps of the liquidation.

SHOW ALL WORK (Question is similar to others on Chegg but it is NOT the same, the numbers are different)