Gilley, Hughes, and Moussa are members of City Signs, LLC, sharing income and losses in the ratio of 2:2:1, respectively. The members decide to liquidate the limited liability company (LLC). The members’ equity prior to liquidation and asset realization on March 1, 2008, are as follows:
|
Gilley |
$ 19,000 |
|
Hughes |
54,000 |
|
Moussa |
32,000 |
|
Total |
$105,000 |
In winding up operations during the month of March, noncash assets with a book value of $126,000 are sold for $146,000, and liabilities of $35,000 are satisfied. Prior to realization, City Signs has a cash balance of $14,000.
a. Prepare a statement of LLC liquidation.
b. Provide the journal entry for the final cash distribution to members.