Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners hav

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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.

glimerit Saved 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 88,400 Accounts payable 546,600 Kendra, Capital Cogley, Capital $245,009 78,000 175, 500 136,500 $635,000 Mei, Capital Total assets 635,000 Total liabities and eauity 5635,000 Required: For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal ent to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should with a minus sign. Round your final answers to the nearest whole dollar) (1) Inventory is sold for $613,200. (2) Inventory is sold for $447,600. (3) Inventory is sold for $349,200 and any partners with capital deficits pay in the amount of their deficits (4) Inventory is sold for $286.200 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 2 Required 1 Required 1G) Inventory Required 2 G) Required 3 Required 2 G) Inventory Required 3 GJ red4Re Inventory Pre 14 of 14

Explanation / Answer

Requirement 1. Step1. Determination of gain / (loss) Proceeds from the sale of inventory 613200 Cost of the inventory 546600 Gain on sale 66600 Step 2. allocation of gain/(loss) to the partners KENDRA COGLEY MEI TOTAL Initial capital balances 78000 175500 136500 390000 Allocation of gain (losses) 33300 22200 11100 66600 111300 197700 147600 456600 a. Entry to record sale of inventory Transaction Account Title Debit Credit a Cash 613200 Inventory 546600 Gain on sale of inventory 66600 b. Entry to allocate the gain on sale of inventory Transaction Account Title Debit Credit b Gain on sale of inventory 66600 Kenrda, Capital 33300 Cogley, Capital 22200 Mei, Capital 11100 c.Payment of liabilities Transaction Account Title Debit Credit c Accounts Payable 245000 Cash 245000 d. Disbursement of remaining cash to the partners Transaction Account Title Debit Credit d Kenrda, Capital 111300 Cogley, Capital 197700 Mei, Capital 147600 Cash(88,400+613,200-245,000) 456600 Requirement 2. Step1. Determination of gain / (loss) Proceeds from the sale of inventory 447600 Cost of the inventory 546600 Gain on sale -99000 Step 2. allocation of gain/(loss) to the partners KENDRA COGLEY MEI TOTAL Initial capital balances 78000 175500 136500 390000 Allocation of gain (losses) -49500 -33000 -16500 -99000 28500 142500 120000 291000 a. Entry to record sale of inventory Transaction Account Title Debit Credit a Cash 447600 Loss on sale of inventory 99000 Inventory 546600 b. Entry to allocate the loss on sale of inventory Transaction Account Title Debit Credit b Kenrda, Capital 49500 Cogley, Capital 33000 Mei, Capital 16500 Loss on sale of inventory 99000 c.Payment of liabilities Transaction Account Title Debit Credit c Accounts Payable 245000 Cash 245000 d. Disbursement of remaining cash to the partners Transaction Account Title Debit Credit d Kenrda, Capital 28500 Cogley, Capital 142500 Mei, Capital 120000 Cash(88,400+447,600-245,000) 291000 Requirement 3. Step1. Determination of gain / (loss) Proceeds from the sale of inventory 349200 Cost of the inventory 546600 Gain on sale -197400 Step 2. allocation of gain/(loss) to the partners KENDRA COGLEY MEI TOTAL Initial capital balances 78000 175500 136500 390000 Allocation of gain (losses) -98700 -65800 -32900 -197400 -20700 109700 103600 192600 a. Entry to record sale of inventory Transaction Account Title Debit Credit a Cash 349200 Loss on sale of inventory 197400 Inventory 546600 b-1. Entry to allocate the loss on sale of inventory Transaction Account Title Debit Credit b-1 Kenrda, Capital 98700 Cogley, Capital 65800 Mei, Capital 32900 Loss on sale of inventory 197400 b-2. Partner(s) with deficit balances repay the amount of their of deficits Transaction Account Title Debit Credit b-1 Cash 20700 Kendra, Capital 20700 c.Payment of liabilities Transaction Account Title Debit Credit c Accounts Payable 245000 Cash 245000 d. Disbursement of remaining cash to the partners Transaction Account Title Debit Credit d Cogley, Capital 109700 Mei, Capital 103600 Cash(88,400+349,200+20,700-245,000) 213300 Requirement 4. Step1. Determination of gain / (loss) Proceeds from the sale of inventory 286200 Cost of the inventory 546600 Gain on sale -260400 Step 2. allocation of gain/(loss) to the partners KENDRA COGLEY MEI TOTAL Initial capital balances 78000 175500 136500 390000 Allocation of gain (losses) -130200 -86800 -43400 -260400 -52200 88700 93100 129600 a. Entry to record sale of inventory Transaction Account Title Debit Credit a Cash 286200 Loss on sale of inventory 260400 Inventory 546600 b. Entry to allocate the loss on sale of inventory Transaction Account Title Debit Credit b-1 Kenrda, Capital 130200 Cogley, Capital 86800 Mei, Capital 43400 Loss on sale of inventory 260400 c.Payment of liabilities Transaction Account Title Debit Credit c Accounts Payable 245000 Cash 245000 d. Disbursement of remaining cash to the partners Transaction Account Title Debit Credit d Cogley, Capital 86400 Mei, Capital 43200 Cash(88,400+286,200-245,000) 129600

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