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, 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. Assets Cash Inventory $ 83,200 553,800 $ 253,500 Balance Sheet Liabilities Accounts payable Equity Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity 76,700 172,575 134,225 $637,000 Total assets $637,000 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 $628,200. 2. Inventory is sold for $464,400. 3. Inventory is sold for $305,400 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $244,800 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 GJ 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 $628,200. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 628,200 Inventory cost Gain on sale Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,700 Allocation of gains (losses) Capital balances after gains (losses) 76,700 MEI COGLEY $ 172,575 Total 383,500 $ 134,225 $ 0 $ 172,575 $ 134,225 $ 383,500 Journal entry worksheet 2 3 4 > Record the sale of inventory. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) Journal entry worksheet Record the payment of the liabilities. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Journal entry worksheet Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. General Journal Debit Credit Transaction (b) Journal entry worksheet Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. General Journal Debit Credit Transaction (d) Required 1 Required 1 G Required 2 Complete this question by entering your answers in the tabs below. Required 3 Inventory Required 2 G Inventory Inventory Required 3 GJ Required 4 Inventory Required 4 G Complete the schedule allocating the gain or loss on the sale of inventory is $464,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 464,400 COGLEY Step 2) Allocation of the gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,700 Allocation of gains (losses) Capital balances after gains (losses) $ 76,700 MEI Total $ 134,225 $ 383,500 $ 172,575 0 $ 172,575 $ 134,225 $ 383,500
