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 liquidation their balance sheet appears as follows. Assets Cash Inventory KENDRA, COGLEY, AND MET Balance sheet May 31 Liabilities and Equity $ 79,400 Accounts payable 549,600 Kendra, Capital Cogley, Capital Mei, Capital $629,000 Total liabilities and equity $248,000 76,200 171,450 133, 350 $629,000 Total assets 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 $600,000 (2) Inventory is sold for $476,400. (3) Inventory is sold for $352,200 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $294,600 and the partners have no assets other than those invested in the partnership 4) Hvery IDU Complete this question by entering your answers in the tabs below. Required 4 G Required 1 Required 2 Required 3 Required 4 Required 1 GJ Required 2 G Inventory Inventory Required 3 G) Inventory Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $600,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 600,000 Inventory cost 549,600 Gain on sale $ 50,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY MEI Initial capital balances $ 76,200 $ 171,450 $ 133,350 Allocation of gains (losses) 3/6 1/6 Capital balances after gains (losses) $ 76,200 $ 171.450 $ 133,350 Total $ 381,000 2/6 0 $ 381,000 (Required 1 Inventory Required 1 GJ 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 View transaction list Journal entry worksheet Required 2 G Required 3 Required 1 Required 1 G) Required 2 Inventory Required 4 Inventory Inventory Required 3 G) Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $352,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet 4 of 4 !!! Required 1 Required 2 Required 1 G) 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 $352,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet Required 1 Required 2 Required 1 G) Inventory Required 3 Inventory Required 2G) Inventory Required 4 Required 3 G) Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $294,600 and the partners have no assets other than those invested in the partnership View transaction list Journal entry worksheet Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet Required 2 G Required 3 Required 1 Required 1 G) Required 2 Inventory Required 4 Inventory Inventory Required 3 G) Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $352,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet 4 of 4 !!! Required 1 Required 2 Required 1 G) 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 $352,200 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet Required 1 Required 2 Required 1 G) Inventory Required 3 Inventory Required 2G) Inventory Required 4 Required 3 G) Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $294,600 and the partners have no assets other than those invested in the partnership View transaction list Journal entry worksheet
