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.

Balance Sheet
Assets		Liabilities
Cash	$ 86,200	Accounts payable	$ 254,000
Inventory	544,800	Equity
		Kendra, Capital	75,400
		Cogley, Capital	169,650
		Mei, Capital	131,950
Total assets	$ 631,000	Total liabilities and equity	$ 631,000

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 $602,400. 2. Inventory is sold for $434,400. 3. Inventory is sold for $350,400 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $258,600 and partners with deficits do not pay their deficits.

Required 1 Inventory Required 1 G Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $602,400. View transaction list Journal entry worksheet Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. Transaction General Journal Debit Credit (d) 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 G) Complete the schedule allocating the gain or loss on the sale of inventory is $434,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 434,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total $ 75,400 169,650 $ 131,950 $ 377,000 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 0 $ 75,400 $ 169,650 $ 131,950 $ 377,000 Required 1 GJ Required 2 GJ Prepare journal entries to record the inventory is sold for $434,400. View transaction list Journal entry worksheet 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal Prepare journal entries to record the inventory is sold for $434,400. View transaction list Journal entry worksheet Record the payment of the liabilities. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general journal Prepare journal entries to record the inventory is sold for $434,400. View transaction list Journal entry worksheet Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal Prepare journal entries to record the inventory is sold for $350,400 and partners with deficits pay their deficits in cash. 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 (1-1) Record entry Clear entry View general journal Prepare journal entries to record the inventory is sold for $350,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet The partner(s) with deficit balances repay the amount of their deficit(s). Note: Enter debits before credits. Transaction General Journal Debit Credit (b-2) Record entry Clear entry View general journal Prepare journal entries to record the inventory is sold for $350,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet Record the payment of liabilities. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general journal Prepare journal entries to record the inventory is sold for $350,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet Record the distribution of the remaining cash to the partners. Note: Enter debits before credits. Transaction General Journal Debit Credit (d) Record entry Clear entry View general journal Required 1 Inventory Required 1 G 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 $258,600 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 258,600 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total $ 75,400 $ 169,650 $ 131,950 $ 377,000 0 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance 75,400 169,650 131,950 377,000 0 Capital balances after deficit allocation $ 75,400 $ 169,650 $ 131,950 $ 377,000