Statement of LLC Liquidation

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	$18,500
Torres	42,700
Hearst	26,500
Total	$87,700

In winding up operations during the month of August, noncash assets with a book value of $115,400 are sold for $143,100, and liabilities of $38,000 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $10,300.

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a. Prepare a statement of LLC liquidation. Enter any subtractions (balance deficiencies, payments, cash distributions, divisions of loss, sale of assets) as negative numbers using a minus sign. If an amount is zero, enter "0".

	Cash +	Noncash Assets =	Liabilities +	Member Equity Lester (2/5) +	Member Equity Torres (2/5) +	Member Equity Hearst (1/5)
Balances before realization	$fill in the blank 13dd350b0fa802c_1	$fill in the blank 13dd350b0fa802c_2	$fill in the blank 13dd350b0fa802c_3	$fill in the blank 13dd350b0fa802c_4	$fill in the blank 13dd350b0fa802c_5	$fill in the blank 13dd350b0fa802c_6
Sale of assets and division of gain	fill in the blank 13dd350b0fa802c_7	fill in the blank 13dd350b0fa802c_8	fill in the blank 13dd350b0fa802c_9	fill in the blank 13dd350b0fa802c_10	fill in the blank 13dd350b0fa802c_11	fill in the blank 13dd350b0fa802c_12
Balances after realization	$fill in the blank 13dd350b0fa802c_13	$fill in the blank 13dd350b0fa802c_14	$fill in the blank 13dd350b0fa802c_15	$fill in the blank 13dd350b0fa802c_16	$fill in the blank 13dd350b0fa802c_17	$fill in the blank 13dd350b0fa802c_18
Payment of liabilities	fill in the blank 13dd350b0fa802c_19	fill in the blank 13dd350b0fa802c_20	fill in the blank 13dd350b0fa802c_21	fill in the blank 13dd350b0fa802c_22	fill in the blank 13dd350b0fa802c_23	fill in the blank 13dd350b0fa802c_24
Balances after payment of liabilities	$fill in the blank 13dd350b0fa802c_25	$fill in the blank 13dd350b0fa802c_26	$fill in the blank 13dd350b0fa802c_27	$fill in the blank 13dd350b0fa802c_28	$fill in the blank 13dd350b0fa802c_29	$fill in the blank 13dd350b0fa802c_30
Distribution of cash to members	fill in the blank 13dd350b0fa802c_31	fill in the blank 13dd350b0fa802c_32	fill in the blank 13dd350b0fa802c_33	fill in the blank 13dd350b0fa802c_34	fill in the blank 13dd350b0fa802c_35	fill in the blank 13dd350b0fa802c_36
Final balances	$fill in the blank 13dd350b0fa802c_37	$fill in the blank 13dd350b0fa802c_38	$fill in the blank 13dd350b0fa802c_39	$fill in the blank 13dd350b0fa802c_40	$fill in the blank 13dd350b0fa802c_41	$fill in the blank 13dd350b0fa802c_42

a. 1. Remember that the statement of partnership liquidation reflects the accounting equation. Sell the assets and divide any gain or loss. 2. Pay liabilities. 3. Distribute any remaining cash based on the capital balances.

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b. Provide the journal entry for the final cash distribution to members. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashHearst, DrawingLester, Member EquityTorres, DrawingLester, Member Equity	Lester, Member Equity	Lester, Member Equity
	Accounts ReceivableCashHearst, DrawingLester, DrawingTorres, Member EquityTorres, Member Equity	Torres, Member Equity	Torres, Member Equity
	Accounts PayableCashHearst, Member EquityLester, DrawingTorres, DrawingHearst, Member Equity	Hearst, Member Equity	Hearst, Member Equity
	CashHearst, DrawingHearst, Member EquityLester, Member EquityTorres, Member EquityCash	Cash	Cash