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	$48,630
Torres	65,630
Hearst	26,190
Total	$140,450

In winding up operations during the month of August, noncash assets with a book value of $140,060 are sold for $152,400, and liabilities of $24,270 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $24,660.

	Required:
a.	Prepare a statement of LLC liquidation.
b.	Provide the journal entry for the final cash distribution to members on August 31. Refer to the Chart of Accounts for exact wording of account titles.
c.	What is the role of the income- and loss-sharing ratio in liquidating a LLC?

Statement of LLC Liquidation

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a. Prepare a statement of LLC liquidation. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter negative numbers (balance deficiencies, payments, cash distributions, divisions of loss), use a minus sign. If there is no amount to be reported for sale of assets, payment of liabilities, receipt of deficiency, or cash distribution rows, the cell can be left blank. However, in the balance rows, a balance of zero MUST be indicated by entering "0".

Score: 111/189

ARCADIA SALES, LLC

Statement of LLC Liquidation

For the Period August 131

1		Cash +	Noncash Assets =	Liabilities +	Member Equity, Lester (2/5) +	Member Equity, Torres (2/5) +	Member Equity, Hearst (1/5)
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