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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ 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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ 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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ 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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ 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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ 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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ 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. Cash Assets Inventory Total assets $ 84,700 541,800 $ 626,500 Balance Sheet Liabilities Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Equity $ 254,000 74,500 167,625 130,375 $ 626,500 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 $600,000. 2. Inventory is sold for $458,400. 3. Inventory is sold for $327,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Gain on sale $ Step 2) Allocation of the Gain (Loss) to the Partners. Required 1 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 Required 2 GJ $ 600,000 541,800 58,200 KENDRA $ 74,500 $ 74,500 2/6 Required 1 Inventory Required 3 GJ COGLEY $ 167,625 $ 167,625 Required 4 Inventory 1/6 $ Required 4 GJ MEI 130,375 $ Required 1 GJ 130,375 Total 372,500 0 372,500 Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 1 2 3 3 4 Record the sale of inventory. Transaction (a) Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Inventory Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $600,000. Required 1 GJ View transaction list Journal entry worksheet 2 Transaction (d) 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $458,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 458,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 1 GJ COGLEY $ Required 3 GJ $ 167,625 167,625 Required 4 Inventory Required 2 GJ $ $ > Required 4 GJ Total 130,375 $ 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 1 2 Record the sale of inventory. Transaction (a) 3 4 Note: Enter debits before credits. Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b) 3 Note: Enter debits before credits. Allocate the gain (loss) on the sale of inventory to the partners. Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 1 Required 1 GJ Required 2 Required 3 Inventory Inventory Inventory Prepare journal entries to record the inventory is sold for $600,000. View transaction list Journal entry worksheet < 12 3 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $458,400. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partners. Transaction (d) 4 Record entry Required 2 GJ General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal Required 4 GJ 4. Inventory is sold for $242,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 327,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA $ $ 74,500 74,500 < Required 2 GJ COGLEY $ Required 3 GJ $ 167,625 Required 4 Inventory 167,625 $ $ Required 3 GJ > MEI Required 4 GJ 130,375 $ Total 372,500 0 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) Record entry Required 2 GJ 4 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. View transaction list Required 1 GJ Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry 4 Allocate the gain (loss) on the sale of inventory to the partners. Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry 4 Required 2 GJ The partner(s) with deficit balances repay the amount of their deficit(s). 5 General Journal Required 3 GJ Clear entry Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) Record entry 4 Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Required 1 Inventory Required 3 Required 2 Inventory Inventory Prepare journal entries to record the inventory is sold for $327,600 and partners with deficits pay their deficits in cash. Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the distribution of the remaining cash to the partners. Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Required 4 Inventory Credit View general journal > Required 4 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 3 Inventory Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of inventory $242,400 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost Required 1 GJ Required 2 Inventory Required 2 GJ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation $ 242,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA $ 74,500 $ 74,500 74,500 Required 3 GJ < Required 3 GJ COGLEY $ 167,625 167,625 $167,625 $ Required 4 GJ Required 4 GJ > MEI Total 130,375 $ 372,500 130,375 0 372,500 0 $ 130,375 $ 372,500 Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet 2 3 4 1 Note: Enter debits before credits. Record the sale of inventory for $242,400. Transaction (a) Required 2 GJ Record entry 4 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 Transaction (b-1) 3 Note: Enter debits before credits. Record entry Required 2 GJ Record the allocation of the gain or loss on the sale of inventory to the partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Transaction (b-2) Record entry Required 2 GJ Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 5 General Journal Required 3 GJ Clear entry Debit Credit Required 4 Inventory View general journal Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) 4 Record entry Required 2 GJ 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $242,400 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 GJ View transaction list Journal entry worksheet < 1 2 3 4 Note: Enter debits before credits. Record the disbursement of the remaining cash to the partner(s). Transaction (d) Required 2 GJ Record entry 5 General Journal Clear entry Required 3 GJ Debit Credit Required 4 Inventory View general journal > Required 4 GJ