90.2K

Verified Solution

Link Copied!

Kendra, Cogley, and Mel share income and loss in a 321 ratio in ratio forme Kendra, 3/6, Cagley, 216, und Mei, 16). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Assets Liabilities Cash $ 94,300 Accounts payable $249,00 Inventory 535,200 Equity Kendra, Capital 76,100 Cogley, Capital 171.225 Hei, Capital 133, 175 Total assets $529,5ee Total liabilities and equity $629,500 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 $606,600 2. Inventory is sold for $445,800 3. Inventory is sold for $345,000 and partners with deficits pay their deficits in cash 4. Inventory is sold for $246,600 and partners with deficits do not pay their deficits. Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 16 Required 2 Inventory Required 2G Required 3 Inventory Required 3 G) Required 4 Inventory Required 4 G) rices Complete the schedule allocating the gain or loss on the sale of inventory is $606,600. Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory $ 606,600 Inventory cost Step 2) Allocation of the Gain (Loss) to the Partners. KENDRA Initial capital balances $ 76,100 Allocation of gains (lasses) Capital balances after gains (losses) COGLEY $ 171.225 MEI Total 133,175 $ 380,500 $ CR In Vegtory Required 1 GJ > View transaction list Journal entry worksheet 2 3 > Record the sale of inventory Note: Enter debits before credits. Transaction General Journal Debit Credit (a) View general journal Clear entry Record entry Required 2 Inventory > rences Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits. General Journal Debit Credit Transaction (6) View general journal Record entry Clear entry Prepare journal entries to record the Inventory is sold for $606,600. View transaction list Journal entry worksheet 1 2 3 4 > Fences Record the payment of the liabilities. Note: Enter debits before credits. Transaction General Journal Debit Credit (C) Record entry Clear entry View general journal Prepare joumal entries to record the inventory is sold for $606,600. View transaction list Journal entry worksheet 1 2 3 4 Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits. General Journal Debit Credit Transaction (d) View general journal Clear entry Record entry Required 2 Inventory > Prepare journal entries to record the inventory is sold for $445,800. eBook View transaction list Print Journal entry worksheet References Record the sale of Inventory. Note: Enter debits before credits. General Journal Debit Credit Transaction (a) Clear entry View general Journal Record entry View general joumat look View transaction list rint Journal entry worksheet 1 2 3 rences Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits General Journal Debit Credit Transaction (b) View general journal Clear entry Record entry Required 3 Inventory > ences Record the payment of the liabilities. Note: Enter debits before credits Debit Credit Transaction General Journal (c) View general journal Clear entry Record entry Required 3 Inventory > Total assets $629,500 Total liabilities and equity 5629 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, es negative amounts.) 1. inventory is sold for $606.600 2. Inventory is sold for $445,800, 3. Inventory is sold for S345,000 and partners with deficits pay their deficits in cash 4. Inventory is sold for $246,600 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 G Required 2 Inventory Required 2 63 Required 3 Inventory Required 4 G) Required 3 Required 4 Inventory Complete the schedule allocating the gain or loss on the sale of Inventory is $345,000 and partners with deficits pay their deficits in cash $ 345.000 Step 1) Determination of Gain (Loss) Proceeds from the sale of inventory Inventory cost COGLEY $ 171225 MEI Total 133.175 300,500 $ Step 2) Allocation of the Gain (Loss) to the Partners KENDRA Initial capital balances $ 76,100 Allocation of gains (losses) Capital balances after gains (losses) Required 3 GJ > 101 Prey 000 and partners with deficits pay their deficits ir OK View transaction list Journal entry worksheet 2 3 4 5 > Allocate the gain(loss) on the sale of inventory to the partners. Note: Ent debits before lits. Transaction General Journal Debit Credit (6-1) View general journal Record entry Clear entry Required 4 Inventory > References The partner(s) with deficit balances repay the amount of their deficit (s). Note: Enter debits before credits. General Journal Debit Credit Transaction (b-2) View general journal Clear entry Record entry Required 4 Inventory > 1 2 3 4 5 References Record the payment of liabilities. Note: Enter debits before credits. Debit Credit General Journal Transaction (c) View getieral journal Clear entry Record entry Required 4 Inventory > Jook View transaction list rint Journal entry worksheet 1 2 3 4 5 > rences Record the sale of inventory for $246,600. Note: Enter debits before credits. Debit General Journal Transaction Credit View general journal Clear entry Record entry

Answer & Explanation Solved by verified expert

See Answer