1 Given Data: 2 3 4 5 6 Assets Premium Pool and Spa Balance Sheet June 30, 2020 Liabilities 7 Cash $68,750 Accounts payable 8 Machinery $ 588,750 Equity 9 Less: Accumulated depreciation 137,500 451,250 Jim Lui, Capital 10 Total assets $520,000 11 12 Total equity 13 Kent Montavo, Capital Dave Johnson, Capital Total liabilities and equity $ 76,250 200,875 $ 130,375 112,500 389,625 $520,000 14 15 Profit and loss sharing ratio: 16 Lui 17 Montavo 18 Johnson 19 20 Cash received for sale of truck: 1 to 4 to 5 21 Part a $488,130 22 Part b $375,000 23 Part c $212,500 24 (partners pay in amounts of any deficits) 25 Part d $187.500 26 (partners have no personal assets to make up for deficits) 27 28