After closing entries were made on December 31, 2011, the ledger of Mac, Nan, and Obe contained

Question:

After closing entries were made on December 31, 2011, the ledger of Mac, Nan, and Obe contained the following balances:
Cash .................................... $39,000
Inventory ................................ 16,000
Accounts payable ...................... $5,000
Mac capital (40%) ..................... 15,000
Nan capital (30%) ....................... 8,000
Obe capital (30%) ..................... 27,000
Due to unsuccessful operations, the partners decide to liquidate the business. During January some of the inventory is sold at cost for $10,000, and on January 31, 2012, all available cash is distributed. It is not known if the remaining inventory items can be sold.
REQUIRED
Prepare all journal entries necessary to account for the transactions of the during January 2012.
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...