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Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. Assets Cash Inventory KENDRA, COGLEY, AND MEI Balance Sheet May 31 Liabilities and Equity $ 84,800 Accounts payable 553,200 Kendra, Capital Cogley, Capital Mei, Capital $638,000 Total liabilities and equity $256,500 76,300 171,675 133,525 $638,000 Total assets Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.) (4) Inventory is sold for $248,400 and the partners have no assets other than those invested in the partnership. Complete the schedule allocating the gain or loss on the sale of inventory $248,400 and the partners have no assets other than those invested in the partnership. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory Cost $ 248,400 553,200 $ (304,800) Loss on sale Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total $ 76,300 $ 171,675 $ 133,525 $ 381,500 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3/6 2/6 1/6 0 76,300 171,675 133,525 381,500 Allocation of deficit balance 3/6 1/6 0 Capital balances after deficit allocation $ 76,300 $ 171,675 $ 133,525 $ 381,500 Journal entry worksheet
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