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Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1 : 4
Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a :: ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June Assets Cash $ Machinery $ Less: Accumulated depreciation Total assets $ Liabilities Accounts payable $ Equity Jim Lui $ Kent Montavo, capital Dave Johnson, capital Total equity Total liabilities and equity $ Required: Under the assumption that the machinery is sold and the cash is distributed to the proper parties on June 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 $Negative answers should be indicated by a minus sign. b The machinery is sold for $Negative answers should be indicated by a minus sign. Premium Pool and Spa June Cash Machinery Accum. Deprec., Machinery Accounts Payable Jim Lui, Capital Kent Montavo, Capital Dave Johnson, Capital Account balances June Sale of Machinery for $ Balance Payment of liabilities Balance Distribution of cash to partners Balance c The machinery is sold for $ 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 Cash Machinery Accum. Deprec., Machinery Accounts Payable Jim Lui, Capital Kent Montavo, Capital Dave Johnson, Capital Account balances June Sale of Machinery for $ Balance Payment of liabilities Balance Johnson pays deficiency Balance Distribution of cash to partners Balance d The machinery is sold for $ 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 Cash Machinery Accum. Deprec., Machinery Accounts Payable Jim Lui, Capital Kent Montavo, Capital Dave Johnson, Capital Account balances June Sale of Machinery for $ Balance Payment of liabilities Balance Allocation of deficiency Balance Distribution of cash to partners Balance Prepare the entry to record the final distribution of cash assuming the machinery is sold for $ Journal entry worksheet Record the final distribution of cash to the partners. Note: Enter debits before credits. Date General Journal Debit Credit June
Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a :: ratio, and on the day of the liquidation their balance sheet appeared as follows:
Premium Pool and Spa
Balance Sheet
June
Assets
Cash $
Machinery $
Less: Accumulated depreciation
Total assets $
Liabilities
Accounts payable $
Equity
Jim Lui $
Kent Montavo, capital
Dave Johnson, capital
Total equity
Total liabilities and equity $
Required:
Under the assumption that the machinery is sold and the cash is distributed to the proper parties on June 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 $Negative answers should be indicated by a minus sign.
b The machinery is sold for $Negative answers should be indicated by a minus sign.
Premium Pool and Spa
June
Cash Machinery Accum.
Deprec.,
Machinery Accounts
Payable Jim Lui,
Capital Kent Montavo,
Capital Dave Johnson,
Capital
Account balances June
Sale of Machinery for $
Balance
Payment of liabilities
Balance
Distribution of cash to partners
Balance
c The machinery is sold for $ 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
Cash Machinery Accum.
Deprec.,
Machinery Accounts
Payable Jim Lui,
Capital Kent Montavo,
Capital Dave Johnson,
Capital
Account balances June
Sale of Machinery for $
Balance
Payment of liabilities
Balance
Johnson pays deficiency
Balance
Distribution of cash to partners
Balance
d The machinery is sold for $ 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
Cash Machinery Accum.
Deprec.,
Machinery Accounts
Payable Jim Lui,
Capital Kent Montavo,
Capital Dave Johnson,
Capital
Account balances June
Sale of Machinery for $
Balance
Payment of liabilities
Balance
Allocation of deficiency
Balance
Distribution of cash to partners
Balance
Prepare the entry to record the final distribution of cash assuming the machinery is sold for $
Journal entry worksheet
Record the final distribution of cash to the partners.
Note: Enter debits before credits.
Date General Journal Debit Credit
June
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