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 $610,200. 2. Inventory is sold for $469,800. 3. Inventory is sold for $334,200 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $276,600 and partners with deficits do not pay their deficits.

Complete the schedule allocating the gain or loss on the sale of inventory is $469,800.

Step 1) Determination of Gain (Loss)
Proceeds from the sale of inventory		$469,800
Inventory cost
Step 2) Allocation of the gain (Loss) to the Partners.
		KENDRA		COGLEY		MEI	Total
Initial capital balances		$77,500		$174,375		$135,625	$387,500
Allocation of gains (losses)							0
Capital balances after gains (losses)		$77,500		$174,375		$135,625	$387,500