Check my Lul , Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June 30, 2020 Assets Cash 5 73,250 Machinery 5684,250 Less: Accumulated depreciation 145,600 459,750 Total assets 5533,000 Liabilities Accounts payable $140,900 Equity Jim Lut $ 77,100 Kent Montavo, capital 201,700 Dave Johnson, capital 113,300 Total equity 322.109 Total Habilities and equity 3533,000 Required: 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 $504,000. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa June 30, 2020 Accum Machinery Deprec Machinery Cash Accounts Payable Jin Lul Capital Kent Montavo. Capital Dave Johnson Capital Account balances June 30, 2020 Sale of Machinery for $504,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance b. The machinery is sold for $391.000. (Negative answers should be indicated by a minus sign.) Premium Pool acid Spa June 30, 2020 Accum Machinery Deprec.. Machinery Cash Accounts Payable Jim Lui Capital Kent Montavo, Capital Dave Johnson Capital Account balances June 30, 2020 Sale of Machinery for $391,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance c. The machinery is sold for $205,000, 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 Accum Machinery Deprec Machinery Accounts Payable Jim Lui, Capital Kont Montavo, Capital Dave Johnson, Capital Cashi Account balances June 30, 2020 Sale of Machinery for S205,000 Balance Payment of liabilities Balance Johnson pays deficiency Balance Distribution of cash to partners Balance d. The machinery is sold for $203.000, 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. Machinery Deprec Machinery Accounts Payable Jim Lul Capital Kent Montavo Capital Dave Johnson, Capital Cash Account balances June 30, 2020 Sale of Machinery for $203,000 Balance Payment of liabilities Balance Allocation of deficiency Balance Distribution of cash to partners Balance V 2 Prepare the entry to record the final distribution of cash assuming the machinery is sold for $504,000. View transaction list Journal entry worksheet > Record the final distribution of cash to the partners. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2020
