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	$	72,200		Accounts payable	$	251,000
Inventory		550,800		Kendra, Capital		74,400
				Cogley, Capital		167,400
				Mei, Capital		130,200
Total assets	$	623,000		Total liabilities and equity	$	623,000

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. 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 $604,200. (2) Inventory is sold for $475,200. (3) Inventory is sold for $301,800 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $282,000 and the partners have no assets other than those invested in the partnership.

1) Complete the schedule allocating the gain or loss on the sale of inventory is $604,200.

Step 1) Determination of Gain (Loss)
Proceeds from the sale of inventory		$604,200
Inventory cost
Step 2) Allocation of the Gain (Loss) to the Partners.
		KENDRA		COGLEY		MEI	Total
Initial capital balances		$74,400		$167,400		$130,200	$372,000
Allocation of gains (losses)
Capital balances after gains (losses)

2) (a) Record the sale of inventory.

(b) Allocate the gain(loss) on the sale of inventory to the partners.

(c) Record the payment of the liabilities.

(d) Record the disbursement of the remaining cash to the partners.

3) Complete the schedule allocating the gain or loss on the sale of inventory is $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
Initial capital balances		$74,400		$167,400		$130,200	$372,000
Allocation of gains (losses)
Capital balances after gains (losses)

4) a) Record the sale of inventory.

b) Allocate the gain(loss) on the sale of inventory to the partners.

c) Record the payment of the liabilities.

d) Record the disbursement of the remaining cash to the partners.

5) Complete the schedule allocating the gain or loss on the sale of inventory is $301,800 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		$301,800
Inventory cost
Step 2) Allocation of the Gain (Loss) to the Partners.
		KENDRA		COGLEY		MEI	Total
Initial capital balances		$74,400		$167,400		$130,200	$372,000
Allocation of gains (losses)
Capital balances after gains (losses)

6) a) Record the sale of inventory.

b) Allocate the gain(loss) on the sale of inventory to the partners.

c) The partner(s) with deficit balances repay the amount of their deficit(s).

d) Record the payment of the liabilities.

e) Record the disbursement of the remaining cash to the partners.

7) Complete the schedule allocating the gain or loss on the sale of inventory $282,000 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		$282,000
Inventory Cost
Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s)
		KENDRA		COGLEY		MEI	Total
Initial capital balances		$74,400		$167,400		$130,200	$372,000
Allocation of gains (losses)
Capital balances after gains (losses)
Allocation of deficit balance
Capital balances after deficit allocation

8) a) Record the sale of inventory for $282,000.

b) Record the allocation of the gain or loss on the sale of inventory to the partners.

c) Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners.

d) Record the payment of the liabilities.

e) Record the disbursement of the remaining cash to the partner(s).