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. Assets Cash Inventory KENDRA, COGLEY, AND MEI Balance Sheet May 31 Liabilities and Equity $ 83,200 Accounts payable 550,800 Kendra, Capital Cogley, Capital Mei, Capital $ 634,000 Total liabilities and equity $250,000 76,800 172,800 134,400 $634,000 Total assets 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 $630,000. (2) Inventory is sold for $471,600. (3) Inventory is sold for $304,200 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $279,600 and the partners have no assets other than those invested in the partnership. 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 $304,200 and any partners with capital deficits pay in the amount of their deficits. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 304,200 COGLEY MEI Total Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,800 Allocation of gains (losses) Capital balances after gains (losses) $ 76,800 $ 172,800 $ 134,400 $ 384,000 0 $ 172,800 $ 134,400 $ 384,000 Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $304,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction General Journal Debit Credit (b-1) 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 Prepare journal entries to record the inventory is sold for $304,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet Record the payment of the liabilities. Note: Enter debits before credits. General Journal Debit Credit Transaction (c) 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 Prepare journal entries to record the inventory is sold for $304,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet
