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.
Related questions
Please solve part 5 to 8
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio.The partners have decided to liquidate their partnership. On theday of liquidation their balance sheet appears asfollows.
| KENDRA, COGLEY, AND MEI Balance Sheet May 31 | |||||||
| Assets | Liabilities andEquity | ||||||
| Cash | $ | 72,200 | Accounts payable | $ | 251,000 | ||
| Inventory | 550,800 | Kendra, Capital | 74,400 | ||||
| Cogley, Capital | 167,400 | ||||||
| Mei, Capital | 130,200 | ||||||
| Total assets | $ | 623,000 | Total liabilities andequity | $ | 623,000 | ||
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 notround intermediate calculations. Amounts to be deducted or Lossesshould be entered with a minus sign. Round your final answers tothe nearest whole dollar.)
(1) Inventory is sold for $604,200.
(2) Inventory is sold for $475,200.
(3) Inventory is sold for $301,800 and any partners with capitaldeficits pay in the amount of their deficits.
(4) Inventory is sold for $282,000 and the partners have no assetsother than those invested in the partnership.
5) Complete the schedule allocating the gain orloss on the sale of inventory is $301,800 and any partners withcapital deficits pay in the amount of their deficits.
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6) a) Record the sale of inventory.
b) Allocate the gain(loss) on the sale of inventory to thepartners.
c) The partner(s) with deficit balances repay the amount oftheir deficit(s).
d) Record the payment of the liabilities.
e) Record the disbursement of the remaining cash to thepartners.
7) Complete the schedule allocating the gain orloss on the sale of inventory $282,000 and the partners have noassets other than those invested in the partnership.
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8) a) Record the sale of inventory for$282,000.
b) Record the allocation of the gain or loss on the sale ofinventory to the partners.
c) Assuming that the partners have no assets other than thoseinvested, allocate any partner(s) deficit balances to the remainingpartners.
d) Record the payment of the liabilities.
e) Record the disbursement of the remaining cash to thepartner(s).
