Statement of LLC Liquidation Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows: Lester $16,000 Torres 37,100 Нearst 23,000 $76,100 Total In winding up operations during the month of August, nancash assets with a book value of $100,200 are sold for $124,200, and liabilities of $33,200 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $9,100. a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "0". Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Member Member Member Equity Lester (2/5) + Torres (2/5) + Hearst (1/5) Equity Equity Noncash Assets = Liabilities + Cash Balances before realization Sale of assets and division of gain Balances after realization Payment of liabilities Balances after payment of liabilities $ Distribution of cash to members Final balances Feedback Check My Work a. 1. Remember that the statement of partnership liquidation reflects the accounting equation. Sell the assets and divide any gain or loss. 2. Pay liabilities. 3. Distribute any remaining cash based on the capital balances. b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank. Lester, Member Equity v Torres, Member Equity Hearst, Member Equity v Cash v
Statement of LLC Liquidation Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows: Lester $16,000 Torres 37,100 Нearst 23,000 $76,100 Total In winding up operations during the month of August, nancash assets with a book value of $100,200 are sold for $124,200, and liabilities of $33,200 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $9,100. a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "0". Arcadia Sales, LLC Statement of LLC Liquidation For the Period August 1-31 Member Member Member Equity Lester (2/5) + Torres (2/5) + Hearst (1/5) Equity Equity Noncash Assets = Liabilities + Cash Balances before realization Sale of assets and division of gain Balances after realization Payment of liabilities Balances after payment of liabilities $ Distribution of cash to members Final balances Feedback Check My Work a. 1. Remember that the statement of partnership liquidation reflects the accounting equation. Sell the assets and divide any gain or loss. 2. Pay liabilities. 3. Distribute any remaining cash based on the capital balances. b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank. Lester, Member Equity v Torres, Member Equity Hearst, Member Equity v Cash v
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Statement of LLC Liquidation
Lester, Torres, and Hearst are members of Arcadia Sales, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company. The members' equity prior to liquidation and asset realization on August 1 are as follows:
Lester
$16,000
Torres
37,100
Hearst
23,000
Total
$76,100
In winding up operations during the month of August, noncash assets with a book value of $100,200 are sold for $124,200, and liabilities of $33,200 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $9,100.
a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "o".
Arcadia Sales, LLC
Statement of LLC Liquidation
For the Period August 1-31
Member
Member
Member
Equity
Equity
Equity
Noncash
Lester (2/5) + Torres (2/5) + Hearst (1/5)
Cash +
Assets = Liabilities +
Balances before realization
Sale of assets and division of gain
Balances after realization
$
$
$4
Payment of liabilities
Balances after payment of liabilities $
$
Distribution of cash to members
Final balances
Feedback
V Check My Work
a.
1. Remember that the statement of partnership liquidation reflects the accounting equation. Sell the assets and divide any gain or loss.
2. Pay liabilities.
3. Distribute any remaining cash based on the capital balances.
b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank.
Lester, Member Equity v
Torres, Member Equity v
Hearst, Member Equity v
Cash v
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education