On August 13, 2010 A-Z LLC liquidated. Members Anthony, Zummer and Piper were sh
ID: 2434502 • Letter: O
Question
On August 13, 2010 A-Z LLC liquidated. Members Anthony, Zummer and Piper were sharing income in a ratio of 6:3:1 respectively. Immediately prior to liquidation the LLCs trial balance was as follows.Cash $18,000
Accounts Receivable 28,000
Accounts Payable 16,000
Anthony, Capital 2,000
Zummer, Capital 20,000
Piper, Capital 12,000
----------- -----------
Totals $48,000 $48,000
On the liquidation date A-Z sells the Accounts Receivable for $20,000 and pays off the payables. Anthony has left town and will not be paying any deficiencies back to the partners, If Zummer or Piper have a deficiency they will pay it back. With the remaining cash the LLC pays off the members. Create the journal entries necessary to record the transactions on August 13th. There should be five entries. (You should use my capital accounts like Anthony, Capital instead of the more common Anthony, Member Equity.)
A-Z LLC
Chart of Accounts
101 Cash
110 Accounts Receivable
111 Allowance for Doubtful Accounts
115 Short-term Notes Receivable
120 Merchandise Inventory
130 Supplies
140 Prepaid Insurance
170 Land
172 Equipment
174 Vehicles
175 Buildings
176 Accumulated Depreciation
180 Patent
182 Use of Name
184 Goodwill
201 Accounts Payable
205 Payroll Taxes Payable
210 Short-term Notes Payable
215 Current Portion of Long-term Debt
240 Vehicle Loan
241 Mortgage Payable
300 Joe Anthony, Capital
301 Phil Zummer, Capital
302 Penny Piper, Capital
399 Retained Earnings
401 Sales
501 Cost of Merchandise Sold
601 Advertising Expense
602 Bad Debt Expense
603 Rent Expense
604 Depreciation Expense
605 Wages and Salaries Expense
606 Utilities Expense
607 Miscellaneous Expense
608 Supplies Expense
690 Interest Expense
701 Interest Income
Explanation / Answer
the answer is 45 or 73
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