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 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.

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 $617,400.

(2) Inventory is sold for $423,000.

(3) Inventory is sold for $336,600 and any partners with capital deficits pay in the amount of their  deficits.

(4)

Inventory is sold for $261,600 and the partners have no assets other than those invested in the partnership.

Explanation:

(1)

(b)	Kendra, Capital ($76,200 × 3 / 6) = $38,100
	Cogley, Capital ($76,200 × 2 / 6) = $25,400
	Mei,  Capital ($76,200 × 1 / 6) = $12,700

  

(d)	Kendra, Capital ($76,400 + $38,100) = $114,500
	Cogley, Capital ($171,900 + $25,400) = $197,300
	Mei,  Capital ($133,700 + $12,700) = $146,400
	Cash = $83,800 + $617,400 − $243,000 = $458,200

(2)

(b)	Kendra, Capital ($118,200 × 3 / 6) = $59,100
	Cogley, Capital ($118,200 × 2 / 6) = $39,400
	Mei,  Capital ($118,200 × 1 / 6) = $19,700

   

(d)	Kendra, Capital ($76,400 − $59,100) = $17,300
	Cogley, Capital ($171,900 − $39,400) = $132,500
	Mei,  Capital ($133,700 − $19,700) = $114,000
	Cash = $83,800 + $423,000 − $243,000 = $263,800

(3)

(b)	Kendra, Capital ($204,600 × 3 / 6) = $102,300
	Cogley, Capital ($204,600 × 2 / 6) = $68,200
	Mei,  Capital ($204,600 × 1 / 6) = $34,100

   

Kendra, Capital ($76,400 − $102,300) = ($25,900)

   

(d)	Cogley, Capital ($171,900 − $68,200) = $103,700
	Mei,  Capital ($133,700 − $34,100) = $99,600
	Cash = $83,800 + $336,600 − $243,000 = $177,400

(4)

(b)	Kendra, Capital ($279,600 × 3 / 6) = $139,800
	Cogley, Capital ($279,600 × 2 / 6) = $93,200
	Mei,  Capital ($279,600 × 1 / 6) = $46,600
	Cogley, Capital ($63,400 × 2 / 3) = $42,267
	Mei,  Capital ($63,400 × 2 / 6) = $21,133
	Kendra, Capital ($76,400 − $139,800) = ($63,400)

   

(d)	Cogley, Capital $171,900 − $93,200 − $42,267 = $36,433
	Mei,  Capital $133,700 − $46,600 − $21,133 = $65,967
	Cash = $83,800 + $261,600 − $243,000 = $102,400

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