Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows.

(2c) Cr. Benson, Capital, $9,300 KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and Equity Cash . . . . . . . . . . . . $180,800 Accounts payable . . . . . . . . . . . . . $245,500 Inventory . . . . . . . . . 537,200 Kendra, Capital . . . . . . . . . . . . . . . 93,000 Cogley, Capital . . . . . . . . . . . . . . . 212,500 Mei, Capital . . . . . . . . . . . . . . . . . 167,000 Total assets . . . . . . . $718,000 Total liabilities and equity . . . . . . . $718,000 Required Prepare journal entries for

(a) the sale of inventory,

(b) the allocation of its gain or loss,

(c) the payment of liabilities at book value, and (d ) the distribution of cash in each of the following separate cases:

Inventory is sold for (1) $600,000; (2) $500,000; (3) $320,000 and any partners with capital deficits pay in the amount of their deficits; and (4) $250,000 and the partners have no assets other than those invested in the partnership. (Round to the nearest dollar.)

AppendixLO1