ABC is a partnership owned by Ales, Baker, and Chaplin, who share profits and losses in the ratio of 2:1:1, respectively. The account balances of the partnership at June 30, 2016, follow:

Requirements
1. Prepare the June 30 entries to close the revenue, expense, income summary, and withdrawal accounts.
2. Open each partner's capital T-account with the adjusted balance, post the closing entries to their accounts, and determine each partner's ending capital balance.
3. Prepare the June 30 entries to liquidate the partnership assuming the non-cash assets are sold for $118,000.

ABC Adjusted Trial Balance June 30, 2016 Balance Debit S 30,000 111,000 Account Title Cash Non-cash Assets Notes Payable Ales, Capital Baker, Capital Chaplin, Capital Ales, Withdrawals Baker, Withdrawals Chaplin, Withdrawals Sales Revenue Salaries Expense Rent Expense Total Credit 33,000 20,000 48,000 53,000 14,000 30,000 53,000 164,000 64,000 16,000 $318,000 318,000