Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. Thepartners have decided to liquidate their partnership. On the day ofliquidation their balance sheet appears as follows.
KENDRA, COGLEY, AND MEI
Balance Sheet
May 31 Assets Liabilities and Equity Cash $ 82,600 Accounts payable $ 246,000 Inventory 539,400 Kendra, Capital 75,200 Cogley, Capital 169,200 Mei, Capital 131,600 Total assets $ 622,000 Total liabilities and equity $ 622,000
Required:
For each of the following scenarios, complete the scheduleallocating the gain or loss on the sale of inventory. Preparejournal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted orLosses should be entered with a minus sign. Round your finalanswers to the nearest whole dollar.)
(1) Inventory is sold for $627,000.
(2) Inventory is sold for $464,400.
(3) Inventory is sold for $334,200 and any partners withcapital deficits pay in the amount of their deficits.
(4) Inventory is sold for $273,600 and the partners haveno assets other than those invested in the partnership.
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. Thepartners have decided to liquidate their partnership. On the day ofliquidation their balance sheet appears as follows.
KENDRA, COGLEY, AND MEI Balance Sheet May 31 | |||||||
Assets | Liabilities and Equity | ||||||
Cash | $ | 82,600 | Accounts payable | $ | 246,000 | ||
Inventory | 539,400 | Kendra, Capital | 75,200 | ||||
Cogley, Capital | 169,200 | ||||||
Mei, Capital | 131,600 | ||||||
Total assets | $ | 622,000 | Total liabilities and equity | $ | 622,000 | ||
Required:
For each of the following scenarios, complete the scheduleallocating the gain or loss on the sale of inventory. Preparejournal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted orLosses should be entered with a minus sign. Round your finalanswers to the nearest whole dollar.)
(1) Inventory is sold for $627,000.
(2) Inventory is sold for $464,400.
(3) Inventory is sold for $334,200 and any partners withcapital deficits pay in the amount of their deficits.
(4) Inventory is sold for $273,600 and the partners haveno assets other than those invested in the partnership.