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, 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 Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital $631,000 Total liabilities and equity $ 89,200 541,800 Liabilities Equity $ 246,000 77,000 173,250 134,750 $ 631,000 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. (Do not round Intermediate calculations. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $604,200. 2. Inventory is sold for $424,200. 3. Inventory is sold for $307,800 and partners with deficits pay their deficits In cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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, 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
$631,000 Total liabilities and equity
Cash
Inventory
Assets
Total assets
$ 89,200
541,800
Required 1
Inventory
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. (Do not round Intermediate calculations. Enter losses and partner deficits, if any, as negative
amounts.)
1
2
1. Inventory is sold for $604,200.
2. Inventory is sold for $424,200.
3. Inventory is sold for $307,800 and partners with deficits pay their deficits in cash.
4. Inventory is sold for $262,200 and partners with deficits do not pay their deficits.
Required 2
Inventory
Required 3
Inventory
Prepare journal entries to record the inventory is sold for $604,200.
View transaction list
Liabilities
Complete this question by entering your answers in the tabs below.
Note:
Required 1 GJ
Equity
Record the sale of inventory.
Allocate the gain (loss) on the sale of inventory to the
partners.
3 Record the payment of the liabilities.
4 Record the disbursement of the remaining cash to the
partners.
Required 2 GJ
= journal entry has been entered
$ 246,000
77,000
173,250
134,750
$631,000
X
Required 3 GJ
Credit
Required 4
Inventory
>
Required 4 GJ
Transcribed Image Text: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, 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 $631,000 Total liabilities and equity Cash Inventory Assets Total assets $ 89,200 541,800 Required 1 Inventory 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. (Do not round Intermediate calculations. Enter losses and partner deficits, if any, as negative amounts.) 1 2 1. Inventory is sold for $604,200. 2. Inventory is sold for $424,200. 3. Inventory is sold for $307,800 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $262,200 and partners with deficits do not pay their deficits. Required 2 Inventory Required 3 Inventory Prepare journal entries to record the inventory is sold for $604,200. View transaction list Liabilities Complete this question by entering your answers in the tabs below. Note: Required 1 GJ Equity Record the sale of inventory. Allocate the gain (loss) on the sale of inventory to the partners. 3 Record the payment of the liabilities. 4 Record the disbursement of the remaining cash to the partners. Required 2 GJ = journal entry has been entered $ 246,000 77,000 173,250 134,750 $631,000 X Required 3 GJ Credit Required 4 Inventory > Required 4 GJ
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