After closing entries were made on December 31, 2016, the ledger of Mac, Nan, and Obe contained the following balances:

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, 2017, 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 partnership during January 2017.

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$5,000 15,000 8,000 27,000 Cash Inventory $39,000 16,000 Accounts payable Mac capital (40%) Nan capital (30%) Obe capital (30%)