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	$	106,400		Accounts payable	$	258,500
Inventory		537,600		Kendra, Capital		77,100
				Cogley, Capital		173,475
				Mei, Capital		134,925
Total assets	$	644,000		Total liabilities and equity	$	644,000

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.) (a) Inventory is sold for $610,200. (b) Inventory is sold for $456,600. (c) Inventory is sold for $326,400 and any partners with capital deficits pay in the amount of their deficits. (d) Inventory is sold for $284,400 and the partners have no assets other than those invested in the partnership.

THESE ARE ALL PART OF ONE BIG QUESTION WITH MULTIPLE PARTS TO IT

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 $ 106,400 Accounts payable 537,600 Kendra, Capital Cogley, Capital Mei, Capital $644,000 Total liabilities and equity $258,500 77,100 173,475 134,925 $644,000 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 $610,200. (2) Inventory is sold for $456,600. (3) Inventory is sold for $326,400 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $284,400 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 1 G Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 G Required 4 Inventory Required 4 G) Complete the schedule allocating the gain or loss on the sale of inventory is $610,200. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 610,200 Inventory cost 537,600 Gain on sale $ 72,600 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 77,100 Allocation of gains (losses) 3/6 36,300 Capital balances after gains (losses) $ 113,400 MEI COGLEY $ 173,475 Total $ 385,500 $ 134,925 2/6 24,200 1/6 72,600 12,100 147,025 $ 197,675 $ $ 458,100