12-6A (Algo) Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. ped Balance Sheet Assets Liabilities Cash Inventory $92,200 Accounts payable. $ 256,500 544,800 Equity Book Kendra, Capital 76,100 rint Cogley, Capital Mei, Capital 171,225 133,175 rences Total assets Required: $ 637,000 Total liabilities and equity $ 637,000 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. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $606,000. 2. Inventory is sold for $438,600. 3. Inventory is sold for $334,200 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $240,000 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $606,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 606,000 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total Initial capital balances $ 76,100 $ 171,225 $ 133,175 $ 380,500 Allocation of gains (losses) 0 Capital balances after gains (losses) $ 76,100 $ 171,225 $ 133,175 $ 380,500 Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Record entry Clear entry View general journal < 1 2 3 4 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit Record entry Clear entry View general journal < Required 1 Inventory Required 2 Inventory > < 1 2 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet 1 2 3 Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit View general journal Record entry Clear entry Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $438,600. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 438,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY Total Initial capital balances $ 76,100 $ 171,225 $ 133,175 $ 380,500 Allocation of gains (losses) 0 Capital balances after gains (losses) $ 76,100 $ 171,225 $ 133,175 $ 380,500 < Required 1 GJ Required 2 GJ > 4 Journal entry worksheet ped ook nt ences < 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet > 2 3 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit Record entry Clear entry View general journal < 1 2 3 4 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) General Journal Debit Credit View general journal Record entry Clear entry < 2 3 4 Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit > Record entry Clear entry View general journal 4. Inventory is sold for $240,000 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $334,200 and partners with deficits pay their deficits in Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 334,200 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY Total Initial capital balances $ 76,100 $ 171,225 $ 133,175 $ 380,500 Allocation of gains (losses) 0 Capital balances after gains (losses) $ 76,100 $ 171,225 $ 133,175 $380,500) < Required 2 GJ Required 3 GJ > View transaction list Journal entry worksheet 1 2 3 4 5 Record the sale of inventory. Note: Enter debits before credits. Transaction. (a) General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 5 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits.. Transaction (b-1) General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 The partner(s) with deficit balances repay the amount of their deficit(s). Note: Enter debits before credits. Transaction (b-2) General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) General Journal Debit Credit Record entry Clear entry View general journal < Required 3 Inventory Required 4 Inventory > Journal entry worksheet < 1 2 3 4 5 Record the distribution of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit Record entry Clear entry View general journal Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory $240,000 and partners with deficits do not pay the Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 240,000 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total Initial capital balances $ 76,100 $ 171,225 $ 133,175 $ 380,500 Allocation of gains (losses) 0 Capital balances after gains (losses) 76,100 171,225 133,175 380,500 Allocation of deficit balance Capital balances after deficit allocation $ 76,100 $ 171,225 $ 133,175 $ 380,500 ped Journal entry worksheet 1 2 3 4 5 bok int Record the sale of inventory for $240,000. rences Note: Enter debits before credits. Transaction. (a) General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 Record the allocation of the gain or loss on the sale of inventory to the partners. es Note: Enter debits before credits. Transaction General Journal Debit Credit (b-1) Record entry Clear entry View general journal > < 1 2 4 10 5 Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. Note: Enter debits before credits. Transaction (b-2) General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 5 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 3 4 5 Record the disbursement of the remaining cash to the partner(s). Note: Enter debits before credits. Transaction (d) General Journal Debit Credit Record entry Clear entry View general journal