Problem 12-5A Liquidation of a partnership LO P4 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 81,100 Accounts payable 259,000 Cash 74,700 Inventory 551.400 Kendra, Capital 168,075 Cogley, Capital 130,725 Mei, Capital Total assets 632,500 Total liabilities and equity 632,500 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. Amounts to be deducted should be entered with a minus sign.) (1) Inventory is sold for $612,600 Step 1) Determination of gain (loss) Proceeds from the sale of inventory 612,600 Inventory Cost Step 2) Allocation of the gain (loss) to the partners Total KENDRA COGLEY MEI 74,700 S 168,075 130,725 373,500 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses)