Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners hav
ID: 2590235 • Letter: K
Question
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
$
100,000
Accounts payable
$
254,000
Inventory
537,000
Kendra, Capital
76,600
Cogley, Capital
172,350
Mei, Capital
134,050
Total assets
$
637,000
Total liabilities and equity
$
637,000
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 or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)
(1) Inventory is sold for $615,600.
(2) Inventory is sold for $477,600.
(3) Inventory is sold for $353,400 and any partners with capital deficits pay in the amount of their deficits.
(4) Inventory is sold for $279,600 and the partners have no assets other than those invested in the partnership.
Complete this question by entering your answers in the tabs below.
Required 1 Inventory
Complete the schedule allocating the gain or loss on the sale of inventory is $615,600.
Step 1) Determination of Gain (Loss)
Proceeds from the sale of inventory
$615,600
Inventory cost
537,000
Gain on sale
$78,600
Step 2) Allocation of the Gain (Loss) to the Partners.
KENDRA
COGLEY
MEI
Total
Initial capital balances
$76,600
$172,350
$134,050
$383,000
Allocation of gains (losses)
3 / 6
2 / 6
1 / 6
0
Capital balances after gains (losses)
$76,600
$172,350
$134,050
$383,000
· Required 1 GJ
Journal entry worksheet
Record the sale of inventory.
Transaction
General Journal
Debit
Credit
(a)
Journal entry worksheet
Allocate the gain(loss) on the sale of inventory to the partners.
Transaction
General Journal
Debit
Credit
(b)
Journal entry worksheet
Record the payment of the liabilities.
Transaction
General Journal
Debit
Credit
(c)
Journal entry worksheet
Record the disbursement of the remaining cash to the partners.
Transaction
General Journal
Debit
Credit
(d)
Required 2 Inventory
Complete the schedule allocating the gain or loss on the sale of inventory is $477,600.
Step 1) Determination of Gain (Loss)
Proceeds from the sale of inventory
$477,600
Inventory cost
Step 2) Allocation of the gain (Loss) to the Partners.
KENDRA
COGLEY
MEI
Total
Initial capital balances
$76,600
$172,350
$134,050
$383,000
Allocation of gains (losses)
3 / 6
2 / 6
1 / 6
0
Capital balances after gains (losses)
$76,600
$172,350
$134,050
$383,000
Required 2 GJ
Prepare journal entries to record the inventory is sold for $477,600.
No
Transaction
General Journal
Debit
Credit
Journal entry worksheet
Record the sale of inventory.
Transaction
General Journal
Debit
Credit
(a)
Journal entry worksheet
Allocate the gain(loss) on the sale of inventory to the partners.
Transaction
General Journal
Debit
Credit
(b)
Journal entry worksheet
Record the payment of the liabilities.
Transaction
General Journal
Debit
Credit
(c)
Journal entry worksheet
Record the disbursement of the remaining cash to the partners..
Transaction
General Journal
Debit
Credit
(d)
Required 3 Inventory
Complete the schedule allocating the gain or loss on the sale of inventory is $353,400 and any partners with capital deficits pay in the amount of their deficits.
Step 1) Determination of Gain (Loss)
Proceeds from the sale of inventory
$353,400
Inventory cost
Step 2) Allocation of the Gain (Loss) to the Partners.
KENDRA
COGLEY
MEI
Total
Initial capital balances
$76,600
$172,350
$134,050
$383,000
Allocation of gains (losses)
3 / 6
2 / 6
1 / 6
0
Capital balances after gains (losses)
$76,600
$172,350
$134,050
$383,000
Required 3 GJ
Prepare journal entries to record the inventory is sold for $353,400 and any partners with capital deficits pay in the amount of their deficits.
No
Transaction
General Journal
Debit
Credit
Required 4 Inventory
Complete the schedule allocating the gain or loss on the sale of inventory $279,600 and the partners have no assets other than those invested in the partnership.
Step 1) Determination of gain (loss)
Proceeds from the sale of inventory
$279,600
Inventory Cost
Step 2) Allocation of the gain (loss) to the partners and distribution of deficit(s)
KENDRA
COGLEY
MEI
Total
Initial capital balances
$76,600
$172,350
$134,050
$383,000
Allocation of gains (losses)
0
Capital balances after gains (losses)
76,600
172,350
134,050
383,000
0
Capital balances after deficit allocation
$76,600
$172,350
$134,050
$383,000
Required 4 GJ
Prepare journal entries to record the inventory is sold for $279,600 and the partners have no assets other than those invested in the partnership.
No
Transaction
General Journal
Debit
Credit
Journal entry worksheet
Record the sale of inventory for $279,600.
Transaction
General Journal
Debit
Credit
(a)
Journal entry worksheet
Record the allocation of the gain or loss on the sale of inventory to the partners.
Transaction
General Journal
Debit
Credit
Transaction
General Journal
Debit
Credit
(c)
Journal entry worksheet
Record the payment of the liabilities.
Transaction
General Journal
Debit
Credit
(d)
Journal entry worksheet
Record the disbursement of the remaining cash to the partner(s).
Transaction
General Journal
Debit
Credit
(e)
KENDRA, COGLEY, AND MEI
Balance Sheet
May 31
Assets
Liabilities and Equity
Cash
$
100,000
Accounts payable
$
254,000
Inventory
537,000
Kendra, Capital
76,600
Cogley, Capital
172,350
Mei, Capital
134,050
Total assets
$
637,000
Total liabilities and equity
$
637,000
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 or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)
(1) Inventory is sold for $615,600.
(2) Inventory is sold for $477,600.
(3) Inventory is sold for $353,400 and any partners with capital deficits pay in the amount of their deficits.
(4) Inventory is sold for $279,600 and the partners have no assets other than those invested in the partnership.
Complete this question by entering your answers in the tabs below.
Required 1 Inventory
Complete the schedule allocating the gain or loss on the sale of inventory is $615,600.
Explanation / Answer
1 If Invetory is Sold for the $615600/- Amount $ S.No Transaction Debit Credit a Cash A/c Dr 615,600 To Inventory A/c 537,000 To Realisation A/c 78,600 Being Sale of Invetory for Profit of $78600 b Realisation A/c Dr 78,600 To Kendra Capital A/c 39,300 To Cogley Capital A/c 26,200 To Mei Capital A/c 13,100 Being Distrivution of prodit to the Partners in the ratio of 3:2:1 c Accounts Payable A/c Dr 254,000 To Cash A/c 254,000 Being Cash paid for the accounts payable d Kendra Capital A/c Dr 115900 Cogley Capital A/c Dr 198550 Mei Capital A/c Dr 147150 To Cash A/c 461,600 Being Balance Cash paid to the Partners by adjusting the Capital Accounts Amount $ 3:02:01 Kendra Cogley Mei Capital 76,600 172,350 134,050 39,300 26,200 13,100 Capital 115,900 198,550 147,150 115900 198550 147150 Cash Statement Opening 100000 Sale of Invetory 615,600 Amount Paid for Payable (254,000) Balance 461600 II If Invetory is Sold for the $477600/- Amount $ S.No Transaction Debit Credit a Cash A/c Dr 477,600 Realisation A/c Dr 59,400 To Inventory A/c 537,000 Being Sale of Invetory for Loss of $59400 b Kendra Capital A/c 29,700 Cogley Capital A/c 19,800 Mei Capital A/c 9,900 To Realisation A/c Dr 59,400 Being Distrivution of Loss to the Partners in the ratio of 3:2:1 c Accounts Payable A/c Dr 254,000 To Cash A/c 254,000 Being Cash paid for the accounts payable d Kendra Capital A/c Dr 46900 Cogley Capital A/c Dr 152550 Mei Capital A/c Dr 124150 To Cash A/c 323,600 Being Balance Cash paid to the Partners by adjusting the Capital Accounts Amount $ 3:02:01 Kendra Cogley Mei Capital 76,600 172,350 134,050 29,700 19,800 9,900 Capital 46,900 152,550 124,150 46900 152550 124150 Cash Statement Opening 100000 Sale of Invetory 477,600 Amount Paid for Payable (254,000) Balance 323600 III If Invetory is Sold for the $353400/- Amount $ S.No Transaction Debit Credit a Cash A/c Dr 353,400 Realisation A/c Dr 183,600 To Inventory A/c 537,000 Being Sale of Invetory for Loss of $59400 b Kendra Capital A/c 91,800 Cogley Capital A/c 61,200 Mei Capital A/c 30,600 To Realisation A/c Dr 183,600 Being Distrivution of Loss to the Partners in the ratio of 3:2:1 c Accounts Payable A/c Dr 254,000 To Cash A/c 254,000 Being Cash paid for the accounts payable d Cogley Capital A/c Dr 111,150 Mei Capital A/c Dr 103,450 To Cash A/c 199,400 To Kendra Capital A/c 15,200 Being Cash paid to the Cogley and Mei along with Cash contrbuted by Kendra for deficit in his Capital Amount $ 3:02:01 Kendra Cogley Mei Capital 76,600 172,350 134,050 91800 61200 30600 Capital (15,200) 111,150 103,450 Cash Statement Opening 100000 Sale of Invetory 353,400 Amount Paid for Payable (254,000) Balance 199400 IV If Invetory is Sold for the $279600/- Amount $ S.No Transaction Debit Credit a Cash A/c Dr 279,600 Realisation A/c Dr 357,400 To Inventory A/c 637,000 Being Sale of Invetory for Loss of $59400 b Kendra Capital A/c 178,700 Cogley Capital A/c 119,133 Mei Capital A/c 59,567 To Realisation A/c Dr 357,400 Being Distrivution of Loss to the Partners in the ratio of 3:2:1 c Accounts Payable A/c Dr 254,000 To Cash A/c 254,000 Being Cash paid for the accounts payable d Cogley Capital A/c Dr 53,217 Mei Capital A/c Dr 74,483 To Cash A/c 25,600 To Kendra Capital A/c 102,100 Being Cash paid to the Cogley and Mei along with Cash contrbuted by Kendra for deficit in his Capital Note In problem , it is given that no other assets are available , hence Cash Balance consisdered as zero and for balancing balnce sheet the invetory value increaed by $100000 Amount $ 3:02:01 Kendra Cogley Mei Capital 76,600 172,350 134,050 178700 119133 59567 Capital (102,100) 53,217 74,483 Cash Statement Opening 0 Sale of Invetory 279,600 Amount Paid for Payable (254,000) Balance 25600
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