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Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Assets Balance Sheet Liabilities Cash $103,700 Accounts payable $256,500 Inventory 541,800 Equity Kendra, Capital 77,800 Cogley, Capital 175,050 Mei, Capital 136,150 Total assets $645,500 Total liabilities and equity $645,500 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 $608,400. 2. Inventory is sold for $430,800. 3. Inventory is sold for $314,400 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $241,800 and partners with deficits do not pay their deficits. 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 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $608,400. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 608,400 Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA COGLEY $ 77,800 $ 175,050 $ 136,150 Total $ 389,000 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) < Required 1 Inventory Required 1 GJ > Required 1 Inventory Required 1 GJ Required 2 Inventory Required 3 Required 2 GJ Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $608,400. View transaction list Journal entry worksheet 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal > Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $430,800. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost $ 430,800 Step 2) Allocation of the gain (Loss) to the Partners. Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) KENDRA COGLEY Total $ 77,800 $ 175,050 $ 136,150 $ 389,000 Required 1 Inventory Required 1 GJ Required 2 Inventory Required 2 GJ Required 3 Required 3 GJ Inventory Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $430,800. View transaction list Journal entry worksheet > 1 2 3 4 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Record entry Clear entry View general journal > Required 1 Inventory Required 1 GJ Required 2 Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory is $314,400 and partners with deficits pay their defi Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost S 314,400 Step 2) Allocation of the Gain (Loss) to the Partners. Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) KENDRA COGLEY MEI Total $ 77,800 $ 175,050 $ 136,150 $389,000 Prepare journal entries to record the inventory is sold for $314,400 and partners with deficits pay their deficits in cash. View transaction list Journal entry worksheet 1 2 3 4 5 Record the sale of inventory. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit View general journal Record entry Clear entry > Required 1 Inventory Required 2 Required 1 GJ Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Complete the schedule allocating the gain or loss on the sale of inventory $241,800 and partners with deficits do not pay their deficits. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory cost $ 241,800 Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s) KENDRA COGLEY Total $ 77,800 $ 175,050 $ 136,150 $ 389,000 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Allocation of deficit balance Capital balances after deficit allocation Required 1 Inventory Required 1 GJ Required 2 Required 2 GJ Inventory Required 3 Inventory Required 3 GJ Required 4 Inventory Required 4 GJ Prepare journal entries to record the inventory is sold for $241,800 and partners with deficits do not pay their deficits. View transaction list Journal entry worksheet 1 2 3 4 5 Record the sale of inventory for $241,800. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit View general journal Record entry Clear entry >

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