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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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