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Chapter 12 HomeworkC Chegg Study | Guided So CSecure https://newconnect.mheducat

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Question

Chapter 12 HomeworkC Chegg Study | Guided So CSecure https://newconnect.mheducation.com/flow/connect.html 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 Cash Inventory Liabilities and Equity 89,23 Accounts payable 553,80 Kendra, Capital Cogley, Capital $259,88e 76,800 172,886 134,486 Mei, Capital Total assets $643,e9 Total liabilities and equity $643,6e6 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 $609,600 (2) Inventory is sold for $464,400. (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 $241,800 and the partners have no assets other than those invested in the partnership Answer is not complete Complete this question by entering your answers in the tabs below Type here to search 7:20 PM 9/5/2018

Explanation / Answer

Answer 1. Cash Inventory Accounts Payable Capital Kendra (3/6) Cogley (2/6) Mei (1/6) Balance        89,200.00     553,800.00     259,000.00           76,800.00         172,800.00        134,400.00 Sale of Inventory     609,600.00 (553,800.00)                       -             27,900.00           18,600.00             9,300.00 Balance     698,800.00                       -       259,000.00         104,700.00         191,400.00        143,700.00 Accounts Payable Paid (259,000.00)                       -   (259,000.00)                          -                            -                            -   Balance     439,800.00                       -                         -           104,700.00         191,400.00        143,700.00 Cash paid to Partners (439,800.00)                       -        (104,700.00)      (191,400.00)      (143,700.00) Balance                       -                         -                         -                            -                            -                            -   Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash        609,600.00    Inventory    553,800.00    Gain on sale of Inventory      55,800.00 2 Gain on sale of Inventory          55,800.00    Kendra, Capital      27,900.00    Cogley, Capital      18,600.00    Mei, Capital        9,300.00 3 Accounts Payable        259,000.00    Cash    259,000.00 4 Kendra, Capital        104,700.00 Cogley, Capital        191,400.00 Mei, Capital        143,700.00    Cash    439,800.00 Answer 2. Cash Inventory Accounts Payable Capital Kendra (3/6) Cogley (2/6) Mei (1/6) Balance        89,200.00     553,800.00     259,000.00           76,800.00         172,800.00        134,400.00 Sale of Inventory     464,400.00 (553,800.00)                       -           (44,700.00)         (29,800.00)        (14,900.00) Balance     553,600.00                       -       259,000.00           32,100.00         143,000.00        119,500.00 Accounts Payable Paid (259,000.00)                       -   (259,000.00)                          -                            -                            -   Balance     294,600.00                       -                         -             32,100.00         143,000.00        119,500.00 Cash paid to Partners (294,600.00)                       -           (32,100.00)      (143,000.00)      (119,500.00) Balance                       -                         -                         -                            -                            -                            -   Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash        464,400.00 Loss on Sale of Inventory          89,400.00    Inventory    553,800.00 2 Kendra, Capital          44,700.00 Cogley, Capital          29,800.00 Mei, Capital          14,900.00    Loss on sale of Inventory      89,400.00 3 Accounts Payable        259,000.00    Cash    259,000.00 4 Kendra, Capital          32,100.00 Cogley, Capital        143,000.00 Mei, Capital        119,500.00    Cash    294,600.00 Answer 3. Cash Inventory Accounts Payable Capital Kendra (3/6) Cogley (2/6) Mei (1/6) Balance        89,200.00     553,800.00     259,000.00           76,800.00         172,800.00        134,400.00 Sale of Inventory     327,600.00 (553,800.00)                       -        (113,100.00)         (75,400.00)        (37,700.00) Balance     416,800.00                       -       259,000.00         (36,300.00)           97,400.00          96,700.00 Accounts Payable Paid (259,000.00)                       -   (259,000.00)                          -                            -                            -   Balance     157,800.00                       -                         -           (36,300.00)           97,400.00          96,700.00 Cash Bought in by Kendra        36,300.00                       -                         -             36,300.00                          -                            -   Balance     194,100.00                       -                         -                            -             97,400.00          96,700.00 Cash paid to Partners (194,100.00)                       -           (97,400.00)        (96,700.00) Balance                       -                         -                         -                            -                            -                            -   Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash        327,600.00 Loss on Sale of Inventory        226,200.00    Inventory    553,800.00 2 Kendra, Capital        113,100.00 Cogley, Capital          75,400.00 Mei, Capital          37,700.00    Loss on sale of Inventory    226,200.00 3 Accounts Payable        259,000.00    Cash    259,000.00 4 Cash          36,300.00    Kendra, Capital      36,300.00 5 Cogley, Capital          97,400.00 Mei, Capital          96,700.00    Cash    194,100.00 Answer 4. Cash Inventory Accounts Payable Capital Kendra (3/6) Cogley (2/6) Mei (1/6) Balance        89,200.00     553,800.00     259,000.00           76,800.00         172,800.00        134,400.00 Sale of Inventory     241,800.00 (553,800.00)                       -        (156,000.00)      (104,000.00)        (52,000.00) Balance     331,000.00                       -       259,000.00         (79,200.00)           68,800.00          82,400.00 Accounts Payable Paid (259,000.00)                       -   (259,000.00)                          -                            -                            -   Balance        72,000.00                       -                         -           (79,200.00)           68,800.00          82,400.00 Deficit Capital Distributed between Patners                       -                         -                         -             79,200.00         (52,800.00)        (26,400.00) Balance        72,000.00                       -                         -                            -             16,000.00          56,000.00 Cash paid to Partners     (72,000.00)                       -           (16,000.00)        (56,000.00) Balance                       -                         -                         -                            -                            -                            -   Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Cash        241,800.00 Loss on Sale of Inventory        312,000.00    Inventory    553,800.00 2 Kendra, Capital        156,000.00 Cogley, Capital        104,000.00 Mei, Capital          52,000.00    Loss on sale of Inventory    312,000.00 3 Accounts Payable        259,000.00    Cash    259,000.00 4 Cogley, Capital          52,800.00 Mei, Capital          26,400.00     Kendra, Capital      79,200.00 5 Cogley, Capital          16,000.00 Mei, Capital          56,000.00    Cash      72,000.00

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