Homework Help is Here – Start Your Trial Now!
Business
Accounting
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. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $623,500 Total liabilities and equity Assets Cash Inventory $ 75,700 547,800 Liabilities Equity $ 247,000 75,300 169,425 131,775 $ 623,500 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. Note: 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 $475,800. 3. Inventory is sold for $348,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits.

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. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $623,500 Total liabilities and equity Assets Cash Inventory $ 75,700 547,800 Liabilities Equity $ 247,000 75,300 169,425 131,775 $ 623,500 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. Note: 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 $475,800. 3. Inventory is sold for $348,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Problem 12-6A (Algo) Liquidation of a partnership LO P5 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. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $ 623,500 Total liabilities and equity Assets Cash Inventory $ 75,700 547,800 Liabilities 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. Note: 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 $475,800. 3. Inventory is sold for $348,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits. Required 1 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory 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 Inventory cost Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Required 2 GJ Step 2) Allocation of the Gain (Loss) to the Partners. Equity $ 606,600 $ 247,000 75,300 169,425 131,775 $ 623,500 KENDRA $ 75,300 < Required 1 Inventory Required 3 GJ COGLEY $ 169,425 Required 4 Inventory Required 4 GJ MEI Total $ 131,775 $ 376,500 Required 1 GJ >
Transcribed Image Text:Problem 12-6A (Algo) Liquidation of a partnership LO P5 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. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $ 623,500 Total liabilities and equity Assets Cash Inventory $ 75,700 547,800 Liabilities 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. Note: 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 $475,800. 3. Inventory is sold for $348,000 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $271,200 and partners with deficits do not pay their deficits. Required 1 GJ Complete this question by entering your answers in the tabs below. Required 1 Inventory Required 2 Inventory Required 3 Inventory 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 Inventory cost Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) Required 2 GJ Step 2) Allocation of the Gain (Loss) to the Partners. Equity $ 606,600 $ 247,000 75,300 169,425 131,775 $ 623,500 KENDRA $ 75,300 < Required 1 Inventory Required 3 GJ COGLEY $ 169,425 Required 4 Inventory Required 4 GJ MEI Total $ 131,775 $ 376,500 Required 1 GJ >
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 6 steps with 16 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Liquidation of Companies
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS