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 ME Balance Sheet May 31 Liabilities and Assets Cash Inventory Equity $ 90,000 Accounts payable $248,000 77,600 Cogley, Cap174,600 135,800 546,000 Kendra, Capital Mei, Capital $636,000 equity Total liabilities and $636,000 Total assets Required For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.) (1)Inventory is sold for $607,800. Step 1) Determination of Gain (Loss Proceeds from the sale of inventory 607 800 Invent cost Step 2) Allocation of the Gain (Loss) to the Partners KENDRA COGLEY MEI Total $ 77,60074,600 Initial capital balances Allocation of gains (losses) Capital balances after gains 135,800 388,000 77,600 osses 174,600 135,800 388,000 View transaction list Journal entry worksheet Record the sale of inventory Note: Enter debits before credits General Journal Debit Credit Transaction Record entry View general journal Clear entry (2)Inventory is sold for $475,200 Step 1) Determination of Gain (Loss Proceeds from the sale of inventory 475,200 Inventory cost Step 2) Allocation of the gain (Loss) to the Partners KENDRA COGLEY MEI Total $ 77,600 $174,600 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 135,800 388,000 0 $ 77,600 $174,600 135,800 388,000 View transaction list Journal entry worksheet Record the sale of inventory Note: Enter debits before credits. Transactionn General Journal Debit Credi Record entry View general journal Clear entry (3)Inventory is sold for $313,800 and any partners with capital deficits pay in (3)Inventory is sold for $313,800 and any partners with capital deficits pay in the amount of their deficits Step 1) Determination of Gain (Loss Proceeds from the sale of inventory Inventory cost 313,800 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total Initial capital balances $ 77,600 174,600 135,800 388,000 Allocation of gains (losses) Capital balances after gains (losses) $ 77,600 174,600 135,800 388,000 View transaction list Journal entry worksheet Record the sale of inventory Note: Enter debits before credits. Transactionn General Journal Debit Credi Record entry View general journal Clear entry (4)Inventory is sold for $256,800 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 256,800 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total $77,600 Initial capital balances Allocation of gains (losses) Capital balances after gains 174,600 135,800 388,000 77,600 174,600 osses Allocation of deficit balance Capital balances after deficit 135,800 388,000 0 135,800 388,000 $77,600 allocation 174,600 View transaction list Journal entry worksheet Record the sale of inventory for $256,800. Note: Enter debits before credits. Transactionn General Journal Debit Credi Record entry View general journal Clear entry
