Kendra, Cogley, and Mel share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mel, 16). 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 $ 614,000 Total liabilities and equity Assets Cash Inventory $ 68,600 545,400 Liabilities Equity $ 242,500 74,300 167,175 130,025 $ 614,000 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 $624,600. 2. Inventory is sold for $433,200. 3. Inventory is sold for $312,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $241,800 and partners with deficits do not pay their deficits.

Kendra, Cogley, and Mel share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mel, 16). 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 $ 614,000 Total liabilities and equity Assets Cash Inventory $ 68,600 545,400 Liabilities Equity $ 242,500 74,300 167,175 130,025 $ 614,000 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 $624,600. 2. Inventory is sold for $433,200. 3. Inventory is sold for $312,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $241,800 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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A-7
Subject: accounting
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