The Franklin-Wyatt partnership presented the following balance sheet at 12/31/11: Assets Liabilities & Owner Equity Cash $ 40,000
Accounts Rec. 55,000
Inventory 43,000
Plant & Equip. 190,000
Accum. Dep'r ( 50,000)
Total Assets $278,000
Accounts Payable Franklin, Capital Wyatt, Capital Total Equities $ 74,000 104,000 100,000 $278,000

On January 1st 2012, the Franklin-Wyatt partnership was liquidated. The partners were able to get only $168,000 for its noncash assets. The partners share profits and losses in the ratio 5:3.

Required: Present the journal entry or entries to record the liquidation of the partnership.

What you want to do is extinguish the capital and return the net equity to the shareholders