Using the information provided below, prepare the statement of liquidation and pertinent journal entries of ABC firm as it liquidates.

Following an unprecedented decline in the sales for the past five years, the manufacturing business of partners A, B, and C was on the brink of bankruptcy. On January 7, 2005, the partners decided to liquidate. C, the managing partner, spearheaded the liquidation process and utilized the most recent statement of financial position shown below as starting point: ABC Manufacturing Statement of Financial Position For the year ended December 31, 2004 Assets Cash Investments in Trading Securities Trade and other receivables (Note 5) Inventories (Note 6) Prepaid expenses (Note 7) Property, plant, and equipment (Note 8) Total assets 20,000 50,000 97,000 65,000 3,500 219,000 454,500 Liabilities and Partner's Equity Trade and other payables (Note 9) A, Capital (30%) B, Capital (30%) C, Capital (40%) Total Liabilities and Partner's Equity 36,500 170,000 48,000 200,000 454,500 Additional information pertaining to liquidation process: 1. Investments in Trading Securities were realized for P30,000. The business was charged P2,800 for early settlement of securities. 2. Note 5 included accounts receivable with a net realizable value of 47,000. It was ascertained that only 50% would be collected. For the remaining balance, only 40% would be collected. 3. A sale of inventory costing P15,000 supposedly to be delivered on January 3, 2020 did not push through. The sale was not recorded by the business but was properly included in inventory. The business was able to realize 70% of the amount. 4. The remaining balance reflected in Note 6 had the proportion 1:2:7 for raw materials, work-in-process, and finished goods, respectively. It was determined that only 30% of the raw materials and 50% of the finished goods were realized. There was no market for the work-in-process. 5. The prepaid expenses were never realized. 6. Property, plant, and equipment were realized for 60% of their carrying value. 7. Note 9 was short of P6,800 representing unrecorded operating expenses received on January 4, 2005. Moreover, it included P8,000 loan from A. 10.Except B, all partners were personally solvent