Lul, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 14-5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June 30, 2020 Assets $ 50,25e Machinery $618,750 Less: Accumulated depreciation 152,000 466.750 Total assets $547.000 Liabilities Accounts payable $152,800 Equity in tut $ 77,500 Kent Montavo, capital 202,400 Dave Johnson, capital 114,000 Total equity 394,200 Total liabilities and equity $547,000 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 $518,000. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa Check my work a. The machinery is sold for $518,000. (Negative answers should be indicated by a minus sign) Premium Pool and Spa June 30, 2020 Accum Machinery Deprec. Machinery Cash Accounts Payable Jim Lui Capital Kent Montavo Capital Dave Jehindi, Capital Account balances June 30, 2020 Sale of Machinery for $518,000 Balance Payment of abilities Balance Distribution of cash to partners Balance b. The machinery is sold for $405,000. (Negative answers should be indicated by a minus sign.) Premium Pool and Spa June 30, 2020 Dave b. The machinery is sold for $405,000. (Negative answers should be indicated by a minus sign.) Premium Pool and 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 $405,000 Balance Payment of liabilities Balance Distribution of cash to partners Balance c. The machinery is sold for $198,000, and any partners with resulting deficits can and do pay in the amount of their deficits. (Negative c. The machinery is sold for $198,000, 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 Cash Accounts Payable Jim Lul Capital Kent Montavo Capital Dave Johnson Capital Account balances June 30, 2020 Sale of Machinery for $198,000 Balance Payment of liabilities Balance Johnson pays deficiency Balance Distribution of cash to partners Balance d. The machinery is sold for $217,000, 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 Cash Accounts Payable Jim Lui Capital Kent Montavo, Capital Dave Johnson Capital Account balances June 30, 2020 Sale of Machinery for $217.000 Balance Payment of liabilities Balance Allocation of deficiency Balance Distribution of cash to partners Balance View transaction list Journal entry worksheet 1 Record the final distribution of cash to the partners. Note: Enter debits before credits Date General Journal Debit Credit June 30 2020
