value: 8.00 points Problem 12-5A Liquidation of a partnership LO P4 Kendra, Cogley, and Mei...
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value: 8.00 points Problem 12-5A Liquidation of a partnership LO P4 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 Liabilities and Equity Assets 65,800 Accounts payable $240,000 Cash 75,800 Inventory 553,200 Kendra, Capital Cogley, Capital 170,550 132,650 Mei, Capital Total assets $619,000 Total liabilities and equity $619,000 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 should be entered with a minus sign.) (1) Inventory is sold for $611,400. Step 1) Determination of gain (loss) Proceeds from the sale of inventory 611,400 Inventory Cost Step 2) Allocation of the gain (loss) to the partners. MEI Total KENDRA COGLEY 75,800 170,550 S 132,650 379,000 Initial capital balances 0 Allocation of gains (losses) 75,800 170,550 132,650 379,000 Capital balances after gains (losses)
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