1. After closing the accounts on July 1, prior to liquidating the partnership, the capital account balances of Gold, Porter, and Sims are $30,000, $42,900, and $18,900, respectively. Cash, noncash assets, and liabilities total $49,200, $79,200, and $36,600, respectively. Between July 1 and July 29, the noncash assets are sold for $63,600, the liabilities are paid, and the remaining cash is distributed to the partners. The partners share net income and loss in the ratio of 3:2:1.

   Prepare a statement of partnership liquidation for the period July 1-29. 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 in "0".

   Gold, Porter, and Sims
   Statement of Partnership Liquidation
   For the Period Ending July 1-29
   	Cash +	Noncash Assets =	Liabilities +	Capital Gold (3/6) +	Capital Porter (2/6) +	Capital Sims (1/6)
   Balances before realization	$	$	$	$	$	$
   Sale of assets and division of loss	+
   Balances after realization	$	$	$	$	$	$
   Payment of liabilities
   Balances after payment of liabilities	$	$	$	$	$	$
   Cash distributed to partners
   Final balances	$	$	$	$	$	$

2. 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	$27,200
   Torres	63,000
   Hearst	39,100
   Total	$129,300

   In winding up operations during the month of August, noncash assets with a book value of $170,200 are sold for $211,000, and liabilities of $56,700 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $15,800.

   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
   	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. For a compound transaction, if an amount box does not require an entry, leave it blank.

   c. What is the role of the income- and loss-sharing ratio in liquidating a LLC?

   The income- and loss-sharing ratio is only used to ___ on the realization of asset sales. It ___ used for the final distribution.