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Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and...

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Accounting

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 Liabilities and Equity
Cash $ 93,900 Accounts payable $ 243,000
Inventory 537,600 Kendra, Capital 77,700
Cogley, Capital 174,825
Mei, Capital 135,975
Total assets $ 631,500 Total liabilities and equity $ 631,500

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. 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 $607,800. (2) Inventory is sold for $425,400. (3) Inventory is sold for $348,000 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $295,200 and the partners have no assets other than those invested in the partnership.

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