Problem 12-6A 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, 16). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Assets Cash Inventory $250.000 $ 76,000 555,000 Balance sheet Liabilities Accounts payable Equity Kendra, Capital Cogley, Capital Mol, Capital Total liabilities and equity 76,200 171,450 133350 $631,000 Total assets $631,000 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 roynd intermediate calculations. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $624,000 2. Inventory is sold for $453,600, 3. Inventory is sold for $338,400 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 2 Inventory Required 1 G) Required 2G) Required 3 Inventory Required 4 G Required 3) Required 4 Inventory 34 AM Complete this question by entering your answers in the tabs below. Required 1 Required 16) Required 2 Inventory Required 3 Required 2G Inventory Required 4 Inventory Required 3 G Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory is $624,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 624,000 Inventory cost Gain on sale Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Total Initial capital balances $ 76,200 $ 171.450 133,350 $ 381,000 Allocation of gains (losses) 0 Capital balances after gains (losses) $ 76,200 $ 171.450 $ 133,350 $ 381,000 Required 1 GJ > Required 1 Inventory Required 1 G3 Required 2 Inventory Required 2 G Required 3 Inventory Required 3 G Required 4 Inventory Required 4 ) Prepare journal entries to record the Inventory is sold for $624,000. View transaction list Journal entry worksheet N 3 4 > Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Record entry Clear entry View general Journal Required 3 G) Required 1 Required 1 G Required 2 Inventory Required 3 Inventory Required 2 G7 Inventory Prepare journal entries to record the inventory is sold for $624,000. Required 4 Inventory Required 4 GJ View transaction list Journal entry worksheet Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction (b) General Journal Debit Credit Record entry Clear entry View general Journal Required 1 Inventory Required 1 G Required 2 Inventory Required 2 G Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G Prepare journal entries to record the inventory is sold for $624,000. View transaction list Journal entry worksheet Record the payment of the liabilities. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general Journal Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 G Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 G Prepare journal entries to record the inventory is sold for $624,000. View transaction list Journal entry worksheet Required 1 Inventory Required 1 G) Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 G Required 4 Inventory Required 4 G Prepare journal entries to record the inventory is sold for $453,600. View transaction list Journal entry worksheet 1 2 3 4 > Record the sale of inventory. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 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 $453,600. View transaction list Journal entry worksheet Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. Transaction General Journal Debit Credit (b) Record entry Clear entry View general Journal Required 1 Inventory Required 1 G Required 2 Inventory Required 2 G Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $453,600. View transaction list Journal entry worksheet Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. General Journal Debit Credit Transaction (d) Record entry Clear entry View general journal 3. Inventory is sold for $338,400 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 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory $338,400 and partners with deficits pay their deficits in cash. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 338.400 Inventory cost COGLEY $ 171,450 $ Stop 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 76 200 Allocation of gains (losses) Capital balances after gains (losses) $ 76,200 MEI Total 133,350 $ 381,000 0 133,350 $ 381,000 $ 171.450 $ rtnership Liquidation i Saved RT Prepare journal entries to record the inventory is sold for $338,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet 2 3 4 5 Record the sale of Inventory. Note: Enter debits before credits General Journal Debit Credit Transaction (a) Record entry Clear entry View general Journal Prepare journal entries to record the inventory is sold for $338,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet 1 3 4 5 Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. General Journal Debit Credit Transaction (6-1) Record entry Clear entry View general Journal ARENT VAR Prepare journal entries to record the inventory is sold for $338,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet 1 2 4 5 The partner(s) with deficit balances repay the amount of their deficit(s). Note: Enter debits before credits. General Journal Debit Credit Transaction (6-2) Record entry Clear entry View general Journal ARTE AHMET *** Prepare journal entries to record the inventory is sold for $338,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet LOU YOLVENY GRILY THE BROWN Required 1 Required 16 Required 2 Inventory Required 3 Required 2 G Inventory Required 4 Inventory Required 3 G) Inventory Required 4 G) 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 1 2 3 4 5 > Record the sale of inventory for $274,800. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) Record entry Clear entry View general Journal . Required 1 Inventory Required 1 G Required 2 Inventory Required 2 G Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GU 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 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 credts. General Journal Debit Credit Transaction (6-2) Record entry Clear entry View general Journal neue H YOU My very your we WMO LOVE MORW. Required 1 Inventory Required 16 Required 2 Inventory Required 2 G Required 3 Inventory Required 3 GU Required 4 Inventory Required 4 G 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 Record the disbursement of the remaining cash to the partner(s). Note: Enter debits before credits General Journal Debit Credit Transaction (d) Record entry Clear entry View general Journal