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	$ 83,800	Accounts payable	$ 257,500
Inventory	544,200	Equity
		Kendra, Capital	74,100
		Cogley, Capital	166,725
		Mei, Capital	129,675
Total assets	$ 628,000	Total liabilities and equity	$ 628,000

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 $610,200. 2. Inventory is sold for $449,400. 3. Inventory is sold for $350,400 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $283,200 and partners with deficits do not pay their deficits.