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Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided...

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Accounting

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio.The partners have decided to liquidate their partnership. On theday of liquidation their balance sheet appears as follows. KENDRA,COGLEY, AND MEI Balance Sheet May 31 Assets Liabilities and EquityCash $ 83,500 Accounts payable $ 252,500 Inventory 549,000 Kendra,Capital 76,000 Cogley, Capital 171,000 Mei, Capital 133,000 Totalassets $ 632,500 Total liabilities and equity $ 632,500 Required:For each of the following scenarios, complete the scheduleallocating the gain or loss on the sale of inventory. Preparejournal entries to record the below transactions. (Do not roundintermediate calculations. Amounts to be deducted or Losses shouldbe entered with a minus sign. Round your final answers to thenearest whole dollar.) (1) Inventory is sold for $610,200. (2)Inventory is sold for $453,000. (3) Inventory is sold for $352,200and any partners with capital deficits pay in the amount of theirdeficits. (4) Inventory is sold for $246,000 and the partners haveno assets other than those invested in the partnership.

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3.5 Ratings (595 Votes)
1 if Inventory is Sold for 610200 Sale of Inventory 610200 Cost of Inventory 549000 Gain on Sale of Inventory 61200 Allocating the gain or loss on the sale of inventory Kendra Cogley Mei Total Beginning Capital 76000 171000 133000 380000 Allocation of GainLoss 30600 20400 10200 61200 New Capital Balance 106600 191400 143200 441200 No Account Title Debit Credit a Cash 610200 Inventory 549000 Gain on Sale of Inventory 61200 b Gain on Sale of Inventory 61200 Kendra Capital 30600 Cogley Capital 20400 Mei Capital 10200 c Accounts Payable 252500 Cash    See Answer
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