Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.

Required:

For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)

(1) Inventory is sold for $610,800.

(2) Inventory is sold for $458,400.

(3) Inventory is sold for $321,600 and any partners with capital deficits pay in the amount of their deficits.

(4) Inventory is sold for $240,000 and the partners have no assets other than those invested in the partnership.

Assets Cash Inventory Total assets KENDRA, COGLEY, AND MEI Balance Sheet May 31 Liabilities and Equity $ 97,100 542,400 $639,500 Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity $256,500 76,600 172,350 134,050 $639,500

Step by Step Solution

3.42 Rating (142 Votes )

There are 3 Steps involved in it

Step: 1

1 Step1 Determination of gain loss Proceeds from the sale of inventory 61080000 Inventory Cost 54240000 Gain On Sale 6840000 Step2 Allocation of GainL... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: John J. Wild, Ken W. Shaw

2010 Edition

9789813155497, 73379581, 9813155493, 978-0073379586

More Books

Students also viewed these Accounting questions