Lui, 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				$	73,250
Machinery	$	604,750
Less: Accumulated depreciation		145,000			459,750
Total assets				$	533,000
Liabilities
Accounts payable				$	140,900
Equity
Jim Lui	$	77,100
Kent Montavo, capital		201,700
Dave Johnson, capital		113,300
Total equity					392,100
Total liabilities and equity				$	533,000

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.)

b. The machinery is sold for $391,000. (Negative answers should be indicated by a minus sign.)

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.)

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.)

2. Prepare the entry to record the final distribution of cash assuming the machinery is sold for $504,000.

Check my work 6 Lui, 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: 10 points $ 73,250 eBook $604,750 145,000 Print 459,750 $533,000 References Premium Pool and Spa Balance Sheet June 30, 2020 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 $140,900 $ 77,100 201,700 113,300 392,10 $533,000 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: ... - Check my work 6 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: 10 points a. The machinery is sold for $504,000. (Negative answers should be indicated by a minus sign.) eBook Premium Pool and Spa June 30, 2020 Accum. Machinery Deprec., Machinery Print Cash Accounts Payable Jim Lui, Capital Kent Montavo, Dave Johnson, Capital Capital References Account balances June 30, 2020 Sale of Machinery for $504,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance 6 6 b. The machinery is sold for $391,000. (Negative answers should be indicated by a minus sign.) 10 points eBook Premium Pool and Spa June 30, 2020 Accum. Machinery Deprec., Machinery Cash Accounts Payable Jim Lui, Capital Kent Montavo, Capital Dave Johnson, Capital Print References Account balances June 30, 2020 Sale of Machinery for $391,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance 6 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.) 10 points Premium Pool and Spa June 30, 2020 Accum. Machinery Deprec., Machinery eBook Cash Accounts Payable Jim Lui, Capital Kent Montavo, Capital Dave Johnson, Capital Print References Account balances June 30, 2020 Sale of Machinery for $205,000 Balance Payment of liabilities Balance Johnson pays deficiency Balance Distribution of cash to partners Balance Check my work 6 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.) 10 points Premium Pool and Spa June 30, 2020 Accum. Machinery Deprec., Machinery Cash Accounts Payable Jim Lui, Capital Kent Montavo, Capital Dave Johnson, Capital eBook Print Account balances June 30, 2020 Sale of Machinery for $203,000 Balance References Payment of liabilities Balance Allocation of deficiency Balance Distribution of cash to partners Balance 6 2. Prepare the entry to record the final distribution of cash assuming the machinery is sold for $504,000. View transaction list 10 points Journal entry worksheet eBook 1 Print References Record the final distribution of cash to the partners. Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2020