12-6A Liquidation of a partnership LO P5

Thats for required 1 Inventory. Than follows (for each 1,2,3 and 4) Required 1 GJ 1) (a) Record the sale of inventory (b) Allocate the gain(loss) on the sale of inventory to the partners (c) Record the payment of the liabilities (d) Record the disbursement of the remaining cash to the partners

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. KENDRA, COGLEY, AND MEI Balance Sheet May 31 Liabilities and Equity Assets Cash Inventory 5102,700 Accounts payable 535,800 Kendra, Capital Cogley, Capital $257,500 76,200 171,450 133,350 $638,500 Mei, Capital Total assets 5638,500 Total liabilities and equity 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 $620,400 (2) Inventory is sold for $468,600. (3) Inventory is sold for $307,800 and any partners with capital deficits pay in the amount of their deficits (4) Inventory is sold for S265,200 and the partners have no assets other than those invested in the partnership. Complete this question by entering your answers in the tabs below Required 2 Inventory Required 3 Inventory Required 3 GJ eqired 4 Required 1 Required 1 GJ Required 2 GJ Required 4 GJ Inventory Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $620,400 Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost S 620,400 Step 2) Allocation of the Gain (Loss) to the Partners KENDRA S76,200 COGLEY MEI otal $ 133,350381,000 Initial capital balances Allocation of gains (losses) Capital balances after gains (osses) $ 171,450 S 76,200 $ 171,450 $ 133,350$ 381,000 Required 1 GJ