Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Problem 12-6A Liquidation of a partnership LO P5
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows.
KENDRA, COGLEY, AND MEI Balance Sheet May 31
Assets
Liabilities and Equity
Cash
$
93,900
Accounts payable
$
243,000
Inventory
537,600
Kendra, Capital
77,700
Cogley, Capital
174,825
Mei, Capital
135,975
Total assets
$
631,500
Total liabilities and equity
$
631,500
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. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)(1) Inventory is sold for $607,800. (2) Inventory is sold for $425,400. (3) Inventory is sold for $348,000 and any partners with capital deficits pay in the amount of their deficits. (4) Inventory is sold for $295,200 and the partners have no assets other than those invested in the partnership.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
