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.

KENDRA, COGLEY, AND MEI Balance Sheet May 31
Assets				Liabilities and Equity
Cash	$	91,100		Accounts payable	$	253,500
Inventory		536,400		Kendra, Capital		74,800
				Cogley, Capital		168,300
				Mei, Capital		130,900
Total assets	$	627,500		Total liabilities and equity	$	627,500

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. Amounts to be deducted should be entered with a minus sign.)

(1)	Inventory is sold for $621,000.

(2)	Inventory is sold for $478,800.

(3)	Inventory is sold for $304,800 and any partners with capital deficits pay in the amount of their deficits.

(4)	Inventory is sold for $270,600 and the partners have no assets other than those invested in the partnership.

Step 1) Determination of gain (loss) 621,000 Proceeds from the sale of inventory Inventory Cost Step 2) Allocation of the gain (loss) to the partners COGLEY KENDRA MEI Total Initial capital balances 74,800 168,300 130,900 374,000 0 Allocation of gains (losses) 130,900 374,000 168,300 74,800 Capital balances after gains (losses) view transaction list view general journal Journal Entry Worksheet 1 2 3 4 Record the sale of inventory. Transaction General Journal Debit Credit *Enter debits before credits done clear entry record entry