Problem 12-6A (Algo) Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; 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. Balance Sheet Assets Liabilities Cash Inventory $ 101,700 Accounts payable 538,800 $ 255,500 Equity Kendra, Capital Cogley, Capital Mei, Capital 77,000 173,250 134,750 Total assets $ 640,500 Total liabilities and equity $ 640,500 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. Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts. 1. Inventory is sold for $613,800. 2. Inventory is sold for $437,400. 3. Inventory is sold for $306,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $245,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $613,800. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 613,800 Step 2) Allocation of the Gain (Loss) to the Partners. Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) $ 77,000 $ 173,250 KENDRA COGLEY Total $ 77,000 $ 173,250 $ 134,750 $ 385,000 0 134,750 $ 385,000 Required 1 Inventory Required 1 GJ > Journal entry worksheet 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet 1 2 3 4 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit View general journal Record entry Clear entry > Journal entry worksheet < 1 2 3 4 Record the payment of the liabilities. Note: Enter debits before credits. Transaction () General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit View general journal Record entry Clear entry Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $437,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 437,400 Step 2) Allocation of the Gain (Loss) to the Partners. Initial capital balances KENDRA COGLEY 77,000 $ 173,250 MEI Total EA 134,750 385,000 Allocation of gains (losses) 0 Capital balances after gains (losses) 77,000 $ 173,250 134,750 $ 385,000 < Required 1 GJ Required 2 GJ Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $437,400. View transaction list Journal entry worksheet 1 2 3 4 Record the payment of the liabilities. Note: Enter debits before credits. Transaction (c) General Journal Debit Credit Required 1 Inventory Required 1 GJ Required 2 Inventory Required 3 Required 2 GJ Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $437,400. View transaction list Journal entry worksheet < 1 2 3 4 Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $437,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 437,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY Total Initial capital balances $ 77,000 $ 173,250 $ 134,750 $385,000 Allocation of gains (losses) 0 Capital balances after gains (losses) $ 77,000 $ 173,250 $ 134,750 $ 385,000 < Required 1 GJ Required 2 GJ > Required 1 Inventory Required 1 GJ Required 2 Inventory Required 3 Required 2 GJ Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $437,400. View transaction list Journal entry worksheet 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required Prepare journal entries to record the inventory is sold for $437,400. View transaction list Journal entry worksheet < 1 2 3 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit Required 1 Inventory Required 1 GJ Required 2 Inventory Required 3 Required 2 GJ Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $437,400. View transaction list Journal entry worksheet 1 2 3 4 Record the payment of the liabilities. Note: Enter debits before credits. Transaction () General Journal Debit Credit Required 1 Inventory Required 1 GJ Required 2 Inventory Required 3 Required 2 GJ Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $437,400. View transaction list Journal entry worksheet 1 2 3 4 Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $306,000 and partners with deficits pay their deficits in cash View transaction list Journal entry worksheet 1 2 3 4 5 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Required 1 Inventory Required 1 GJ Required 2 Required 2 GJ Inventory Required 3 Inventory Required 4 Required 3 GJ Required 4 GJ Inventory Prepare journal entries to record the inventory is sold for $306,000 and partners with deficits pay their deficits in ca View transaction list Journal entry worksheet 1 2 3 4 5 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b-1) General Journal Debit Credit Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 4 Required 3 GJ Required 4 GJ Inventory Prepare journal entries to record the inventory is sold for $306,000 and partners with deficits pay their deficits in cash View transaction list Journal entry worksheet 1 2 3 4 5 The partner(s) with deficit balances repay the amount of their deficit(s). Note: Enter debits before credits. Transaction (b-2) General Journal Debit Credit Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $306,000 and partners with deficits pay their deficits in cas View transaction list Journal entry worksheet 1 2 3 4 5 Record the payment of liabilities. Note: Enter debits before credits. Transaction (c) General Journal Debit Credit View Manaval: > Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 4 Required 3 GJ Required 4 GJ Inventory Prepare journal entries to record the inventory is sold for $306,000 and partners with deficits pay their deficits in cas View transaction list Journal entry worksheet < 1 2 3 4 5 Record the distribution of the remaining cash to the partners. Note: Enter debits before credits. Transaction (d) General Journal Debit Credit > Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory $245,400 and partners with deficits do not pay thei Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 245,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total Initial capital balances $ 77,000 $ 173,250 $ 134,750 $ 385,000 Allocation of gains (losses) 0 Capital balances after gains (losses) 77,000 173,250 134,750 385,000 Allocation of deficit balance Capital balances after deficit allocation $ 77,000 0 $ 173,250 < Required 3 GJ Required 4 GJ > $ 134,750 $ 385,000 Required 1 Inventory Required 2 Required 1 GJ Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $245,400 and partners with deficits do not pay their defici View transaction list Journal entry worksheet < 1 2 3 4 5 Record the allocation of the gain or loss on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b-1) General Journal Debit Credit Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $245,400 and partners with deficits do not pay their deficits. View transaction list Journal entry worksheet < 1 2 4 5 Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. Note: Enter debits before credits. Transaction (b-2) General Journal Debit Credit > Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $245,400 and partners with deficits do not pay their deficits. View transaction list Journal entry worksheet < 1 2 3 4 5 Record the payment of liabilities. Note: Enter debits before credits. Transaction () General Journal Debit Credit > Required 1 Inventory Required 1 GJ Required 2 Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $245,400 and partners with deficits do not pay their deficits View transaction list Journal entry worksheet 1 2 3 4 5 Record the sale of inventory for $245,400. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit >