Lewis, Zapata, and Fowler share equally in net income and net losses After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows Lewis, $76,580 Cr Zapata, $35,050 Cr Fowler, $16,980 Dr Required A What term is applied to the debit balance in Fowlers capital account B What is the amount of cash on hand C On December 31, journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances Refer to the Chart of Accounts for exact wording of account titles Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $36,400 and $28,100 to each member, respectively In addition, the operating agreement specified an income sharing ratio of 3 1 The two members withdrew amounts equal to their salary allowances Note The reduction in members equity from withdrawals would be disclosed on the statement of members equity Required A Determine the division of $149,400 net income for the year B On December 31, provide journal entries to close the (1) income summary and (2) drawing accounts for the two members Refer to the Chart of Accounts for exact wording of account titles C If the net income were less than the sum of the salary allowances, how would income be divided between the two members of the LLC istribution of Cash Upon Liquidation Pryor and Lester are partners, sharing gains and losses equally They decide to terminate their partnership Prior to realization, their capital balances are $36,000 and $24,000, respectively After all noncash assets are sold and all liabilities are paid, there is a cash balance of $45,000 a What is the amount of a gain or loss on realization Gain or Loss Amount $ b How should the gain or loss be divided between Pryor and Lester Pryor Lester c How should the cash be divided between Pryor and Lester If an amount is zero, enter 0 Lester and Pryor Distribution of Cash Pryor Lester Capital balances before realization $ $ Division of gain or loss on realization Balances $ $ Cash distributed to partners Final balances $ $

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 19, 2024

Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization,

Lewis, Zapata, and Fowler share equally in net income and net losses. After the partnership sells all assets for cash, divides the losses on realization, and pays the liabilities, the balances in the capital accounts are as follows: Lewis, $76,580 Cr.; Zapata, $35,050 Cr.; Fowler, $16,980 Dr.

Required:

What term is applied to the debit balance in Fowlers capital account?

What is the amount of cash on hand?

On December 31, journalize the transaction that must take place for Lewis and Zapata to receive cash in the liquidation process equal to their capital account balances. Refer to the Chart of Accounts for exact wording of account titles.

Martin Farley and Ashley Clark formed a limited liability company with an operating agreement that provided a salary allowance of $36,400 and $28,100 to each member, respectively. In addition, the operating agreement specified an income-sharing ratio of 3:1. The two members withdrew amounts equal to their salary allowances.

Note: The reduction in members equity from withdrawals would be disclosed on the statement of members equity.

Required:

Determine the division of $149,400 net income for the year.

On December 31, provide journal entries to close the (1) income summary and (2) drawing accounts for the two members. Refer to the Chart of Accounts for exact wording of account titles.

If the net income were less than the sum of the salary allowances, how would income be divided between the two members of the LLC?

istribution of Cash Upon Liquidation

Pryor and Lester are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $36,000 and $24,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $45,000.

a. What is the amount of a gain or loss on realization?

Gain or Loss
Amount	$

b. How should the gain or loss be divided between Pryor and Lester?

Pryor
Lester

c. How should the cash be divided between Pryor and Lester? If an amount is zero, enter "0".


Lester and Pryor
Distribution of Cash
	Pryor	Lester
Capital balances before realization	$	$
Division of gain or loss on realization
Balances	$	$
Cash distributed to partners
Final balances	$	$