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. Assets Cash Inventory KENDRA, COGLEY, AND MEI Balance Sheet May 31 Liabilities and Equity $ 86,400 Accounts payable 552,600 Kendra, Capital Cogley, Capital Mei, Capital $639,000 Total liabilities and equity $258,500 76,100 171,225 133, 175 $639,000 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 $603,600. (2) Inventory is sold for $479,400. (3) Inventory is sold for $327,600 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $271,800 and the partners have no assets other than those invested in the partnership. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 160 Required 2 Inventory Required 2G) Required 3 Inventory Required 3 6 Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory is $603,600. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 603,600 Inventory cost 552,600 $ 51,000 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY Initial capital balances $ 76,100 $ 171,225 Allocation of gains (losses) 3/6 Capital balances after gains (losses) $ 76,100 $ 171,225 $ MEI $ 133,175 $ Total 380,500 0 2/6 1/6 133,175 $ 380,500 Required 1 Inventory Required 1 GJ > Prepare journal entries to record the inventory is sold for $603,600. View transaction list Journal entry worksheet Record the sale of inventory. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 16 Required 2 Inventory Required 2 G Required 3 Required 3 G Required 4 Inventory Required 4 G Inventory Complete the schedule allocating the gain or loss on the sale of inventory is $479,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 479,400 Inventory cost Step 2) Allocation of the gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,100 Allocation of gains (losses) Capital balances after gains (losses) S 76,100 COGLEY $ 171,225 MEI 133,175 $ Total $ 380,500 0 $ 380,500 $ 171,225 $ 133,175 Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal Required 2 Inventory Required 3 Inventory > Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 160 Required 2 Inventory Required 2G Required 3 Inventory Required 36 Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and any partners with capital deficits pay in the amount of their deficits. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory 327,600 Inventory cost S Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA MEI COGLEY $ 171,225 $ 76,100 $ 133, 175 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Total $ 380,500 0 $ 76,100 $ 171,225 $ 133, 175 $ 380,500 Prepare journal entries to record the inventory is sold for $327,600 and any partners with capital deficits pay in the amount of their deficits. View transaction list Journal entry worksheet Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal Required 1 Inventory Required 1 G) Required 2 Inventory Required 2G) Required 3 Inventory Required 3 J Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory $271,800 and the partners have no assets other than those invested in the partnership. Step 1) Determination of gain (loss) Proceeds from the sale of inventory $ 271,800 Inventory Cost MEI $ 133,175 Total $ 380,500 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY Initial capital balances $ 76,100 $ 171,225 Allocation of gains (losses) Capital balances after gains (losses) 76,100 171,225 Allocation of deficit balance Capital balances after deficit allocation $ 76,100 $ 171,225 0 133,175 380,500 0 $ 133,175 $ 380,500 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 $271,800 and the partners have no assets other than those invested in the partnership. View transaction list Journal entry worksheet Record the sale of inventory for $271,800. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal