Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Assets Cash Inventory $254,000 $ 69,500 555,000 Balance Sheet Liabilities Accounts payable Equity Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity 74,100 166,725 129,675 $624,500 Total assets $624,500 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. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $625,200. 2. Inventory is sold for $445,800. 3. Inventory is sold for $324,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $248,400 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 G 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 $445,800. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 445,800 Inventory cost 555,000 Loss on sale $ (109,200) Step 2) Allocation of the gain (Loss) to the Partners. KENDRA Initial capital balances $ 74,100 Allocation of gains (losses) (54,600) Capital balances after gains (losses) $ 19,500 COGLEY MEI Total $ $ 166,725 (36,400) 130,325 129,675 $ 370,500 (18,200) (109,200) 111,475 $ 261,300 $ $ Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal Complete this question by entering your answers in the tabs below. 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 $248,400 and partners with deficits do not pay the Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 248,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total $ 74,100 $ 166,725 $ 129,675 $ 370,500 0 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance 74,100 166,725 129,675 370,500 0 Capital balances after deficit allocation $ 74,100 $ 166,725 $ 129,675 $ 370,500