Gilley, Hughes, and Moussa are members of City Signs, LLC, sharing income and losses in the ratio

Question:

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 tomembers.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Liquidation
Liquidation in finance and economics is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they are due....