15 Problem 12-6A 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. 0.76 points Assets Cash Inventory $ 90,400 546,600 $249,500 Balance Sheet Liabilities Accounts payable Equity Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity eBook 77,500 174,375 135,625 $637,000 Total assets $637,000 Print References 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. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $611,400. 2. Inventory is sold for $448,800. 3. Inventory is sold for $345,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $299,400 and partners with deficits do not pay their deficits. 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 $611,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost 611,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total Initial capital balances $ 77,500 $ 174,375 $ 135,625 $ 387,500 Allocation of gains (losses) Capital balances after gains (losses) Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Req Prepare journal entries to record the inventory is sold for $611,400. View transaction list X: 1 Record the sale of inventory. 2 Allocate the gain(loss) on the sale of inventory to the partners. 3 Record the payment of the liabilities. 4 Record the disbursement of the remaining cash to the partners. 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 $448,800. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 448,800 Step 2) Allocation of the gain (Loss) to the Partners. KENDRA COGLEY MEI Total $ 77,500 $ 174,375 135,625 $ 387,500 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Requir Prepare journal entries to record the inventory is sold for $448,800. View transaction list :X 1 Record the sale of inventory. 2 Allocate the gain(loss) on the sale of inventory to the partners. 3 Record the payment of the liabilities. 4 Record the disbursement of the remaining cash to the partners. 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 $345,000 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 345,000 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total Initial capital balances $ 77,500 $ 174,375 $ 135,625 $ 387,500 Allocation of gains (losses) Capital balances after gains (losses) Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Re In Prepare journal entries to record the inventory is sold for $345,000 and partners with defi View transaction list X: 1 Record the sale of inventory. 2 Allocate the gain(loss) on the sale of inventory to the partners. 3 The partner(s) with deficit balances repay the amount of their deficit(s). 4 Record the payment of liabilities. Credit 5 Record the distribution of the remaining cash to the partners. Note : = journal entry has been entered Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory $299,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 299,400 MEI Total $ 135,625 $ 387,500 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY Initial capital balances $ 77,500 $ 174,375 Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation Required 1 Inventory Required 1 G) Required 2 Inventory Required 2 G) Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $299,400 and partners with deficits do not pay their defici View transaction list :X: Record the sale of inventory for $299,400. 2 Record the allocation of the gain or loss on the sale of inventory to the partners. 3 Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. Credit 4 Record the payment of liabilities. 5 Record the disbursement of the remaining cash to the partner(s). Note : journal entry has been entered