Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei 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 MEI Balance Sheet May 31 Assets Liabilities and Equity Cash $ 81,600 Accounts payable $ 247,000 Inventory 548,400 Kendra, Capital 76,600 Cogley, Capital 172,350 Mei, Capital 134,050 Total assets $ 630,000 Total liabilities and equity $ 630,000 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 $603,000. (2) Inventory is sold for $471,000. (3) Inventory is sold for $316,800 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $257,400 and the partners have no assets other than those invested in the partnership.

Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ 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 $603,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 603,000 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY $ 172,350 MEI 134,050 Total 383,000 $ 76,600 $ $ Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) | $ 76,600 $ 172,350 $ 134,050 $ 383,000 Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2G) Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $603,000. 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 (a) Required 1 Inventory Required 1 GJ 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 is $471,000. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 471,000 Step 2) Allocation of the gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,600 Allocation of gains (losses) Capital balances after gains (losses) $ 76,600 COGLEY $ 172,350 MEI 134,050 Total 383,000 $ $ $ 172,350 $ 134,050 $ 383,000 Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 G) Prepare journal entries to record the inventory is sold for $471,000. View transaction list Journal entry worksheet