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 $28,100 Torres 65,000 Hearst 40,400 Total $133,500 In winding up operations during the month of August, noncash assets with a book value of $175,800 are sold for $218,000, and liabilities of $56,500 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $14,200. 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 Cash + Noncash Assets = Liabilities + Member Equity Lester (2/5) + Member Equity Torres (2/5) + Member Equity Hearst (1/5) 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 $ $ $ $ $ $ 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 Torres, Member Equity Hearst, Member Equity Cash Please Answer All Questions Correctly.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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 | $28,100 |
| Torres | 65,000 |
| Hearst | 40,400 |
| Total | $133,500 |
In winding up operations during the month of August, noncash assets with a book value of $175,800 are sold for $218,000, and liabilities of $56,500 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $14,200.
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 | ||||||
Cash + |
Noncash Assets = |
Liabilities + |
Member Equity Lester (2/5) + |
Member Equity Torres (2/5) + |
Member Equity Hearst (1/5) |
|
| 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 | $ | $ | $ | $ | $ | $ |
b. Provide the
| Lester, Member Equity | |||
| Torres, Member Equity | |||
| Hearst, Member Equity | |||
| Cash |
Please Answer All Questions Correctly.
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