No need to explain, please I beg just solve everything, would be greatly appreciated (huge thumbs up)! :)
Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 376; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Assets Cash Inventory $252,000 $ 83,900 546,600 Balance Sheet Liabilities Accounts payable Equity Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity 75,700 170,325 132,475 $630,500 Total assets $630,500 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 $600,600. 2. Inventory is sold for $479,400. 3. Inventory is sold for $358,200 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $280,200 and partners with deficits do not pay their deficits. Required 1 Inventory Required 1 G Required 2 Inventory Required 2 G Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G] Complete the schedule allocating the gain or loss on the sale of inventory is $600,600. Step 1) Determination of Gain (Loss) $ 600,600 Proceeds from the sale of inventory Inventory cost C Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 75,700 Allocation of gains (losses) Capital balances after gains (losses) OGLEY 170,325 MEI 132,475 Total 378,500 $ $ $ 1 Record the sale of inventory. 2 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. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 G Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G] Complete the schedule allocating the gain or loss on the sale of inventory is $479,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 479,400 C Step 2) Allocation of the gain (Loss) to the Partners. KENDRA Initial capital balances $ 75,700 Allocation of gains (losses) Capital balances after gains (losses) OGLEY 170,325 MEI 132,475 Total 378,500 $ $ $ i Record the sale of inventory. 2 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. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2G Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 G] Complete the schedule allocating the gain or loss on the sale of inventory is $358,200 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 358,200 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 75,700 Allocation of gains (losses) Capital balances after gains (losses) C $ OGLEY 170,325 M $ EI 132,475 Total 378,500 $ 1 Record the sale of inventory. 2 Allocate the gain(loss) on the sale of inventory to the partners. 3 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. Required 1 Inventory Required 1 G) Required 2 Inventory Required 2G Required 3 Inventory Required 3 G Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory $280,200 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 280,200 M $ EI 132,475 Total $ 378,500 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY Initial capital balances $ 75,700 $ 170,325 Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation i Record the sale of inventory for $280,200. 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)
