Problem 12-6A (Algo) Liquidation of a partnership LO P5 Kendra, Cogley, and Mel share income and loss in a 3.2:1 ratio (in ratio form: Kendra, 3/6: Cogley, 2/6; and Mel, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Liabilities Assets $ 240,eee Cash Inventory Equity $ 76,200 Accounts payable 544,800 Kendra, Capital Cogley, Capital Mei, Capital 76,200 171,450 133, 350 $ 621,000 Total assets $ 621,600 Total liabilities and equity 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 $606,600 2. Inventory is sold for $426,600. 3. Inventory is sold for $348,600 and partners with deficits pay their deficits in cash. 3. Inventory is sold for $348,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $274,800 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 G Required 2 Inventory Required 2 G 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 $606,600. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 606,600 s Step 2) Allocation of the Gain (Loss) to the Partners. COGLEY MEI Total KENDRA $ 76,200 $ 171.450 $ 133,350 $ 381,000 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Required 1 Inventory Required 1 G) Required 2 Inventory Required 2G) Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $606,600. View transaction list Journal entry worksheet Record the sale of inventory. Note: Enter debits before credits Transaction General Journal Debit Credit (a) 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 is $426,600. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 426,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total $ 76,200 $ 171.450 $ 133,350 $ 381,000 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Prepare journal entries to record the inventory is sold for $426,600. View transaction list Journal entry worksheet Required 2 Required 2G) Required 1 Inventory Required 3 Inventory Required 4 Inventory Require Required 1 G] Required 3 G) Inventory Prepare journal entries to record the inventory is sold for $348,600 and partners with deficits pay their defic View transaction list Journal entry worksheet > Required 1 Inventory Required 2 Inventory Required 4 G) Required 3 G) Required 3 Inventory Required 1 G) Required 2G) Required 4 Inventory Prepare journal entries to record the inventory is sold for $274,800 and partners with deficits do not pay their deficits. View transaction list Journal entry worksheet
