Kendra, Cogley, and Mei share revenue and loss at a 3:2:1 ratio. The partners have decided to liquidate their partnership. On settlement day your balance appears as follows.

Balance sheet of KENDRA, COGLEY AND MEI as of May 31

Assets Liabilities and Equity

Cash $94,600

Inventory $536,400

Total inventory $631,000

Accounts payable $247,000

Kendra, Capital $76,800

Cogley, Capital $172,800

Mei, Capital $134,400

Total liabilities and equity $631,000

Required: 

For each of the following scenarios, complete the schedule by allocating the gain or loss on the sale of inventory. Prepare journal entries to record the following transactions. 

(1) Inventory sells for $625,800

(2) Inventory sells for $478,200.

(3) Inventory sells for $308,400 and partners with capital shortfalls pay the amount of their shortfalls.

(4) Inventory sells for $270,600 and the partners have no more assets than are invested in the partnership.