Question

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 Torres $34,400 79,600 49,500 Hearst Total $163,500 In winding up operations during the month of August, noncash assets with a book value of $215,000 are sold for $266,600, and liabilities of $69,300 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $17,800. 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 Equity Lester Member Equity Torres (2/5). Member Equity Hearst Noncash Assets Cash (175) Balances before realization Sale of assets and division of Balances for reaction Payment of Babes Balances after payment of abies Distribution of cash to members Final balances

this is the full amount

Answer 1

Members Equity Members Equity Members Equity Cash + Non Cash Assets Liabilities. Lester 2/5 Torres 12/ 5 H earst (1/5) 17800 215000 69300 34.400 79800 49500 266600 -215000 20640 20640 10320 284400 69300| 55040 1 00240 59820 69300 -693001 215100 55010 100240 59820 -215100 -55040 -100240 59820 Balance before Realisation Sale of Assets & Division of Gain Balance after Realisation Payment of Liability Balance after Payment of Liability Distribution of cash to member Final Balance 0 Members Equity Lester... Dr. Members Equity Torres....Dr. Members Equity Hearst. Dr. To Cash 55040 100240 59820 215100 Income & Loss sharing Ration is only used to on the realisation of assets sale. 1 Admitting a New Partner: Journal Entries 31/08/2049 Assets Revaluation Nc Dr.... 2200 To Account Receivable Being 2200 Account Receivable Written off) 300 31/08/2019 Assets Revaluation Nc Dr. To Allowance for Doubtful Debt

Reply (page 2 of 3) (Being 5% allowance on Account Receivable as doubtful debt) 3900 31/08/2019 Mecantise Inventory Dr... To Assets Revaluation A/C (Revaluation of Mercandise Inventory) 3900 49300 31/08/2019 Accumulated Depreciation A/c Dr.... To Assets Revaluation A/C (Revaluation of Equipment) 49300 21900 31/08/2019 Equipment A/c Dr.... To Assets Revaluation A/C (Revaluation of Equipment) 21900 31/08/2049 Assets Revaluation A/c ... Dr. 28800 To Brian Caldwell Capital To Adriana Estrada Capital (Being Assets revaluation profit transferred to Capital) 14400 14400 2 Journal Entry to Record May's Entrace to Partnership on Sep 1, 2019 Cash... Dr. Adriana Estrada Capital Dr.. To Kris Mays Capital (Being Journal entry for entry of Kris Mays) 30000 56000 96000 Note: Kris mays will give 61000 to Adriana Estrada personally so no entry will be passed in Partnership Balance Sheet of New partnership as on 01st Sep, 20x9

Assets Current Assets Cash Account Receivable Allowance for doubtful debt Mecantise Inventory Prepaid Insurance Total Current Assets 35900 34000 - 1700 59300 2000 129500 Property Plant & Equipment 137100 Total Assets 266600 Liabilities Current Liabilities Accounts Payable Notes Payable Total Current Liabilities 13800 37000 50800 Partners Equity Brian Caldwell Capital Adriana Estrada Capital Kris Mays Capital 98400 31400 86000 215800 266600