REQUIRED 4 INVENTORY AND GJ

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 $ 84,000 Accounts payable 543,000 Kendra, Capital Cogley, Capital Mei, Capital $627,000 Total liabilities and equity $256,000 74,200 166,950 129,850 $627,000 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 $604,200. (2) Inventory is sold for $466,800. (3) Inventory is sold for $322,800 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $248,400 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 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 $248,400 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 Inventory Cost $ 248,400 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY MEI Total Initial capital balances $ 74,200 $ 166,950 $ 129,850 $ 371,000 Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation Record the sale of inventory for $248,400. Note: Enter debits before credits. Transaction General Journal Debit Credit (a) Record entry Clear entry View general journal Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $248,400 and the partners have no assets other than those invested in the partnership View transaction list Journal entry worksheet 1 2 3 4 5 > Record the allocation of the gain or loss on the sale of inventory to the partners. Note: Enter debits before credits. Transaction General Journal Debit Credit (6-1) Record entry Clear entry View general journal Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $248,400 and the partners have no assets other than those invested in the partnership View transaction list Journal entry worksheet 1 2 3 4 5 > Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners. Note: Enter debits before credits. Transaction General Journal Debit Credit (b-2) Record entry Clear entry View general journal Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $248,400 and the partners have no assets other than those invested in the partnership View transaction list Journal entry worksheet 1 2 3 4 5 > Record the payment of the liabilities. Note: Enter debits before credits. Transaction General Journal Debit Credit (c) Record entry Clear entry View general journal Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $248,400 and the partners have no assets other than those invested in the partnership View transaction list Journal entry worksheet 1 2 3 4 5 > Record the disbursement of the remaining cash to the partner(s). Note: Enter debits before credits. Transaction General Journal Debit Credit (d) Record entry Clear entry View general journal