Chapter 11 Assignment 5 54 boires Seved Help Save & Exit Submit Problem 11-8A Liquidation of a partnership LOS Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 14:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Preis Pool and ps Balance Shees June 30, 2020 Assets Cash Machinery Ines: Accumulated depreciation Total assets Liabilities Accounts payable Equity Kent Montavo, capital Dave Johnson, capital Total equity Total liabilities and equity 1,250 $620.750 153,000 467-750 $549,000 $154,500 $ 73,900 202,500 124-100 394,500 $549,000 equired: 1. Under the assumption that the machinery is sold and the cash is distributed to the proper parties on June 30, 2020, complete the schedule provided below. Show the sale, the gain or loss allocation, and the distribution of the cash in each of the following unrelated cases: a. The machinery is sold for $520,000. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa June 30, 2020 Cash Machinery Accum. Deprec., Machinery Kent Accounts Payable Jim Lui, Capital Montavo, Capital Dave Johnson, Capital Account balances June 30, 2020 Sale of Machinery for $520,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance 5 b. The machinery is sold for $407,000. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa June 30, 2020 Dints References Cash Machinery Account balances June 30, 2020 Sale of Machinery for $407,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance Accum. Deprec Accounts Payable Jim Lul Capital Machinery Kent Montavo, Capital Dave Johnson. Capital c. The machinery is sold for $197,000, and any partners with resulting deficits can and do pay in the amount of their deficits. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa June 30, 2020 Account balances June 30, 2020 Sale of Machinery for $197,000 Balance Payment of liabilities Balance Johnson pays deficiency Balance Distribution of cash to partners Balance Cash Machinery Accum. Deprec.. Machinery Kent Accounts Payable Jim Lui, Capital Montavo, Capital Dave Johnson, Capital d. The machinery is sold for $219,000, and the partners have no assets other than those invested in the business. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa June 30, 2020 Accum. Accounts Cash Machinery Deprec Payable Jim Lui, Capital Kent Montavo, Dave Johnson, Machinery Capital Capital Account balances June 30, 2020 Sale of Machinery for $219,000 Balance Payment of liabilities Balance Allocation of deficiency Balance Distribution of cash to partners Balance Journal entry worksheet < 1 Saved Help Save & Exit Record the final distribution of cash to the partners. Note: Enter debits before credits. Date June 30, 2020 General Journal Debit Credit Record entry Clear entry View general journal