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	$	93,900		Accounts payable	$	243,000
Inventory		537,600		Kendra, Capital		77,700
				Cogley, Capital		174,825
				Mei, Capital		135,975
Total assets	$	631,500		Total liabilities and equity	$	631,500

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 $607,800. (2) Inventory is sold for $425,400. (3) Inventory is sold for $348,000 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $295,200 and the partners have no assets other than those invested in the partnership.