8 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 havedecided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows.AssetsCashInventoryTotal assets$ 86,200550,800Balance SheetAccounts payableKendra, CapitalCogley, CapitalMei, Capital$ 637,000 Total liabilities and equity1. Inventory is sold for $628,200.2. Inventory is sold for $451,800.LiabilitiesRequired:For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entriesto record the below transactions.Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts.Required 1 GJ3. Inventory is sold for $316,800 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.Complete this question by entering your answers in the tabs below.Initial capital balancesAllocation of gains (losses)Capital balances after gains (losses)Required 1InventoryRequired 2InventoryRequired 3InventoryComplete the schedule allocating the gain or loss on the sale of inventory is $628,200.Step 1) Determination of Gain (Loss)Proceeds from the sale of inventoryInventory costRequired 2 GJStep 2) Allocation of the Gain (Loss) to the Partners.Equity$ 628,200$ 248,00077,800175,050136,150$ 637,000KENDRA$ 77.800< Required 1 InventoryRequired 3 GJCOGLEY$ 175,050Required 4Inventory$MEIRequired 1 GJRequired 4 GJTotal136,150 $ 389,000

Gain on sale of inventory is the excess amount of proceeds from sale of inventory over inventory…

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. Assets Cash Inventory Total assets $86,200 550,800 $ 637,000 Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Liabilities Equity $ 248,000 77,800 175,050 136,150 $ 637,000 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. Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts. 1. Inventory is sold for $628,200. 2. Inventory is sold for $451,800. 3. Inventory is sold for $316,800 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.