Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mel share Income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows. KENDRA, COGLEY, AND MET Balance Sheet May 31 Assets Liabilities and Equity Canh $ 91,000 Accounts payable $248,500 Inventory 540,000 Kendra, Capital 76,500 Cogley, Capital 172,125 Mei, Capital 133,875 Total assets $631,000 Total 11abilities and equity $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 round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.) (1) Inventory is sold for $621,000. (2) Inventory is sold for $453,600. (3) Inventory is sold for $318,000 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $259,800 and the partners have no assets other than those invested in the partnership Complete this question by entering your answers in the tails below. Required 1 Inventory Required 1 G) Required 2 Inventory Required 2 G) 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 $318,000 and any partners with capital deficits pay in amount of their deficits. Stop 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost 318,000 Step 2) Allocation of the Gain (Loss) to the Partners KENDRA MEI Total COGLEY $ 172.125 $ 76,500 $ 133,875 $ 382,500 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 1 Record the sale of inventory. 2 Allocate the gain(loss) on the sale of inventory to the partners. 3 The partner(s) with deficit balances repay the amount of their deficit(s). 4 Record the payment of the liabilities. 5 Record the disbursement of the remaining cash to the partners. Complete this question by entering your answers in the tabs below. Required 1 Required 1 G) Required 2 Required 3 Required 2G) Inventory Inventory Required 4 Inventory Required 3 G) Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory $259,800 and the partners have no assets Invested in the partnership. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory Cost $ 259,800 MEI $ 133.875 Total $ 382,500 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY Initial capital balances $ 76,500 $ 172,125 Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation 1 Record the sale of inventory for $259,800. 2 Record the allocation of the gain or loss on the sale of inventory to the partners. 3 Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. Crec 4 Record the payment of the liabilities. 5 Record the disbursement of the remaining cash to the partner(s)
