Kendra, Cogley, and Mel share income and loss in a 3.2:1 ratio (in ratio form: Kendro, 3/6: Cogley, 2/6; and Mei, 16). The partners have decided to liquidate their partnership on the day of liquidation, their balance sheet appears as follows. Balance Sheet Assets Liabilities Cash $ 75,300 Accounts payable $240, 500 Inventory 547,200 Equity Kendra, Capital 76,400 Cogley, Capital 171.900 Mei, Capital 133, 700 Total assets $622,500 Total liabilities and equity $622,500 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. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $609,600. 2. Inventory is sold for $472.200 3. Inventory is sold for $334,200 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $246,000 and partners with deficits do not pay their deficits. 4. inventory is sold for $240.000 and partners deficits do not pay Teir delicitS. Complete this question by entering your answers in the tabs below. Required 4 Inventory Required 4 G Required 1 Required 2 Required 1 G Required 2 GJ Required 3 Inventory Inventory Required 3 G) Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $609,600. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 609,600 Inventory cost MEI Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances 76,400 Allocation of gains (losses) Capital balances after gains (losses) COGLEY $ 171.900 Total 382,000 $ 133,700 $ Red Inventory Required 1 GJ > Journal entry worksheet Record the sale of inventory. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) 1 Record the sale of inventory. Allocate the gain(loss) on the sale of inventory to the partners. 3 Record the payment of the liabilities. 4 Record the disbursement of the remaining cash to the partners Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost 472,200 Step 2) Allocation of the gain (Loss) to the Partners. KENDRA $ 76,400 COGLEY $ 171.900 MEI 133,700 Total 382,000 $ $ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Record the sale of inventory. Allocate the gain(loss) on the sale of inventory to the partners. Record the payment of the liabilities. 4 Record the disbursement of the remaining cash to the partners. Step 1) Determination of Gain (LOS) Proceeds from the sale of inventory Inventory cost $ 334,200 COGLEY MEI Total $ 382,000 $ Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,400 Allocation of gains (losses) Capital balances after gains (losses) 171.900 $ 133,700 Record the sale of inventory. 2 Allocate the gain(loss) on the sale of inventory to the partners. The partner(s) with deficit balances repay the amount of their deficit(s). 4 Record the payment of liabilities. 5 Record the distribution of the remaining cash to the partners. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 246,000 Total MEI $ 133,700 $382.000 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY Initial capital balances $ 76,400 $ 171,900 Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation 1 Record the sale of inventory for $246,000. 2 Record the allocation of the gain or loss on the sale of inventory to the partners. 3 Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. 4 Record the payment of liabilities. 5 Record the disbursement of the remaining cash to the partner(s)
