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 $53,120 Torres 55,790 Hearst 26,560 Total $135,470   In winding up operations during the month of August, noncash assets with a book value of $157,550 are sold for $170,590, and liabilities of $47,430 are satisfied. Prior to realization, Arcadia Sales has a cash balance of $25,350. Required: a. Prepare a statement of LLC liquidation. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter negative numbers (balance deficiencies, payments, cash distributions, divisions of loss), use a minus sign. If there is no amount to be reported for sale of assets, payment of liabilities, receipt of deficiency, or cash distribution rows, the cell can be left blank. However, in the balance rows, a balance of zero MUST be indicated by entering "0". b. Provide the journal entry for the final cash distribution to members on August 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. c. What is the role of the income- and loss-sharing ratio in liquidating an LLC?

Cheese Partners has decided to close the store. At the date of closing, Cheese Partners had the following account balances: Capital $8,000 Cash 8,000 Inventory 12,000 Store fixtures 8,000 Accounts payable 22,000 A competitor agrees to buy the inventory and store fixtures for $15,000. Prepare the journal entries detailing the liquidation, assuming that partners Colette and Swarma are sharing profits on a 50:50 basis. If an amount box does not require an entry, leave it blank.

Damarcus is a 50 percent owner of Hoop (a business entity). In the current year, Hoop reported a $100,000 business loss. Answer the following questions associated with each of the following alternative scenarios. (Leave no answer blank. Enter zero if applicable.)   a. Hoop is organized as a C corporation and Damarcus works full-time as an employee for Hoop. Damarcus has a $20,000 basis in his Hoop stock. How much of Hoop’s loss is Damarcus allowed to deduct against his other income?     Allowable deduction of loss

Dan Nichols has owned and operated a proprietorship for several years. On January 1, he decides to terminate this business and become a partner in the firm of Nichols and Rathke. Nichols’s investment in the partnership consists of $14,000 in cash, and the following assets of the proprietorship: accounts receivable $20,000 less allowance for doubtful accounts of $3,000, and equipment $25,000 less accumulated depreciation of $5,000. It is agreed that the allowance for doubtful accounts should be $4,000 for the partnership. The fair value of the equipment is $17,500.Instructions:Journalize Nichols’s admission to the firm of Nichols and Rathke.

Subject : Accounting

The following book and fair values were available for Westmont Company as of March 1.Arturo Company pays $4,000,000 cash and issues 20,000 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont’s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $25,000 and Arturo pays $42,000 for legal fees to complete the transaction. Prepare Arturo’s journal entries to record its acquisition of Westmont.

The CPA Partnership operated by Cook, Parks, and Argo is being liquidated. A balance sheet prepared at this stage in their liquidation process is presented below. Cash   $37,000   Liabilities   $24,000 Other Assets   52,000   Parks, Loan   9,000         Cook, Capital   31,000         Parks, Capital   10,000         Argo, Capital   15,000    Total   $89,000      Total   $89,000 The partners share profits and losses 30% (Cook), 50% (Parks), and 20% (Argo). The partners are all personally insolvent.             (a) The partners wish to distribute the $37,000 in cash. Record in journal entry form the distribution of the available cash. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit…

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances: Cash $ 60,000 Liabilities $ 40,000 Noncash assets 219,000 Frick, capital (60%) 129,000 Wilson, capital (20%) 35,000      Clarke, capital (20%)   75,000 Total assets $279,000 Total liabilities and capital $279,000 Part A Prepare a predistribution plan for this partnership. Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of $8,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $94,000 for $60,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $51,000. Paid actual liquidation expenses of $6,000 only. Distributed remaining cash to the partners and closed the financial records of the business permanently.…

Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are         Carney, capital $ 79,000 Pierce, capital   32,700 Menton, capital   62,000 Hoehn, capital   25,700     Which of the following statements is true? (1)Carney will collect a portion of any available cash before Hoehn receives money. (2)The first available $7,700 will go to Hoehn. (3)The first available $10,600 will go to Manton. (4) Carney will be the last partner to receive any available cash.

The partnership of Frick, Wilson, and Clarke has elected to cease all operations and liquidate its business property. A balance sheet drawn up at this time shows the following account balances:                 Cash $ 64,000   Liabilities $ 44,000 Noncash assets   225,000   Frick, capital (60%)   132,000         Wilson, capital (20%)   36,000         Clarke, capital (20%)   77,000 Total assets $ 289,000   Total liabilities and capital $ 289,000     Part A Prepare a predistribution plan for this partnership.   Part B The following transactions occur in liquidating this business: Distributed safe payments of cash immediately to the partners. Liquidation expenses of  $9,000 are estimated as a basis for this computation. Sold noncash assets with a book value of $96,000 for $64,000. Paid all liabilities. Distributed safe payments of cash again. Sold remaining noncash assets for $52,000. Paid actual liquidation expenses of $7,000 only. Distributed remaining cash to the…