KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Cash Inventory Liabilities a
ID: 2497962 • Letter: K
Question
KENDRA, COGLEY, AND MEI Balance Sheet May 31 Assets Cash Inventory Liabilities and Equity $ 90,400 Accounts payable 537,600 Kendra, Capital $255,000 74,600 167,850 130,550 Cogley, Capital Mei, Capital otal assets $628,000 Total liabilities and equity$628,000 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. Amounts to be deducted should be entered with a minus sign.) (1) Inventory is sold for $622,200. Step 1) Determination of gain (loss) Proceeds from the sale of inventory Inventory Cost Gain on sale Step 2) Allocation of the gain (loss) to the partners. $622,200 537,600 84,600 KENDRA COGLEY MEI Total 130,550 $ 373,000 84,600 $ 457,600 74,600 $167,850 $1 Initial capital balances Allocation of gains (losses) Capital balances after gains (losses) 3 6 42,300 2/6 28,200 1/6 14,100 $116,900 $196,050 $144,650Explanation / Answer
Journal 3 B
Kendra, Capital Dr.111,900
Cogley, Capital Dr.74,600
Mei, Capital Dr.37,300
To Loss on Sale of Inventory Cr.223,800
( Being Loss on Sale of Land distributed to the Partners in their Income and Loss Ratio)
Journal 4
Sale of Inventory
Cash Dr.265,800
Loss on Sale of Inventory Dr.271,800
To Inventory Cr.537,600
(Being Inventory Sold at a Loss of $271,800 recorded and entry passed)
Allocation of the loss on the sale of inventory to the partners
Kendra, Capital Dr.271,800
Cogley, Capital Dr.135,900
Mei, Capital Dr.90,600
To Loss on Sale of Inventory Cr.271,800
( Being Loss on Sale of Land distributed to the Partners in their Income and Loss Ratio)
Allocation of deficit balance
Cogley, Capital Dr.40,867
Mei, Capital Dr.20,433
To Kendra, Capital Cr.61,300
( Being defecite balance of Kendra allocated to remaining partners in the ratio of 2:1)
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.