Question
In: Accounting
Please solve part 5 to 8 Kendra, Cogley, and Mei share income and loss in a...
Please solve part 5 to 8
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 | $ | 72,200 | Accounts payable | $ | 251,000 | ||
| Inventory | 550,800 | Kendra, Capital | 74,400 | ||||
| Cogley, Capital | 167,400 | ||||||
| Mei, Capital | 130,200 | ||||||
| Total assets | $ | 623,000 | Total liabilities and equity | $ | 623,000 | ||
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 $604,200.
(2) Inventory is sold for $475,200.
(3) Inventory is sold for $301,800 and any partners with capital
deficits pay in the amount of their deficits.
(4) Inventory is sold for $282,000 and the partners have no assets
other than those invested in the partnership.
5) Complete the schedule allocating the gain or loss on the sale of inventory is $301,800 and any partners with capital deficits pay in the amount of their deficits.
|
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6) a) Record the sale of inventory.
b) Allocate the gain(loss) on the sale of inventory to the partners.
c) The partner(s) with deficit balances repay the amount of their deficit(s).
d) Record the payment of the liabilities.
e) Record the disbursement of the remaining cash to the partners.
7) Complete the schedule allocating the gain or loss on the sale of inventory $282,000 and the partners have no assets other than those invested in the partnership.
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8) a) Record the sale of inventory for $282,000.
b) Record the allocation of the gain or loss on the sale of inventory to the partners.
c) Assuming that the partners have no assets other than those invested, allocate any partner(s) deficit balances to the remaining partners.
d) Record the payment of the liabilities.
e) Record the disbursement of the remaining cash to the partner(s).
Solutions
Expert Solution
1.
| Inventory Balance | 550800 | |||
| Sale value | 604200 | |||
| Profit on sale | 53400 | |||
| Total | Kendra | Cogley | Mei | |
| 53400 | 74400 | 167400 | 130200 | |
| Distribution of profit | -53400 | 26700 | 17800 | 8900 |
| New Balances | 0 | 101100 | 185200 | 139100 |
| Sale of inventory | ||
| Account Title | Debit | Credit |
| Cash | 604200 | |
| Inventory | 550800 | |
| Gain on sale of inventory | 53400 | |
| Distribution of profit to partners | ||
| Account Title | Debit | Credit |
| Gain on sale of inventory | 53400 | |
| Kendra. Capital | 26700 | |
| Cogley, Capital | 17800 | |
| Mei, Capital | 8900 | |
2.
| Inventory Balance | 550800 | |||
| Sale value | 475200 | |||
| Profit on sale | -75600 | |||
| Total | Kendra | Cogley | Mei | |
| -75600 | 74400 | 167400 | 130200 | |
| Distribution of profit | 75600 | -37800 | -25200 | -12600 |
| New Balances | 0 | 36600 | 142200 | 117600 |
| Sale of inventory | ||
| Account Title | Debit | Credit |
| Cash | 475200 | |
| Loss on sale of inventory | 75600 | |
| Inventory | 550800 | |
| Distribution of loss to partners | ||
| Account Title | Debit | Credit |
| Kendra. Capital | 37800 | |
| Cogley, Capital | 25200 | |
| Mei, Capital | 12600 | |
| Loss on sale of inventory | 75600 | |
3.
| Inventory Balance | 550800 | |||
| Sale value | 301800 | |||
| Profit on sale | -249000 | |||
| Total | Kendra | Cogley | Mei | |
| -249000 | 74400 | 167400 | 130200 | |
| Distribution of profit | 249000 | -124500 | -83000 | -41500 |
| New Balances | 0 | -50100 | 84400 | 88700 |
| Sale of inventory | ||
| Account Title | Debit | Credit |
| Cash | 301800 | |
| Loss on sale of inventory | 249000 | |
| Inventory | 550800 | |
| Distribution of loss to partners | ||
| Account Title | Debit | Credit |
| Kendra. Capital | 124500 | |
| Cogley, Capital | 83000 | |
| Mei, Capital | 41500 | |
| Loss on sale of inventory | 249000 | |
| Partner with capital deficit pays for the deficit | ||
| Account Title | Debit | Credit |
| Cash | 50100 | |
| Kendra, Capital | 50100 | |
6.
| a. Sale of inventory | ||
| Account Title | Debit | Credit |
| Cash | 301800 | |
| Loss on sale of inventory | 249000 | |
| Inventory | 550800 | |
| b. Distribution of loss to partners | ||
| Account Title | Debit | Credit |
| Kendra. Capital | 124500 | |
| Cogley, Capital | 83000 | |
| Mei, Capital | 41500 | |
| Loss on sale of inventory | 249000 | |
| c. Partner with capital deficit pays for the deficit | ||
| Account Title | Debit | Credit |
| Cash | 50100 | |
| Kendra, Capital | 50100 | |
| d. Payment of liabilities | ||
| Account Title | Debit | Credit |
| Accounts Payable | 251000 | |
| Cash | 251000 | |
| e. Distribution of remaining cash | ||
| Account Title | Debit | Credit |
| Kendra. Capital | 34620 | |
| Cogley, Capital | 77895 | |
| Mei, Capital | 60585 | |
| Cash | 173100 | |
Working:
| Inventory Balance | 550800 | |||
| Sale value | 301800 | |||
| Profit on sale | -249000 | |||
| Total | Kendra | Cogley | Mei | |
| -249000 | 74400 | 167400 | 130200 | |
| Distribution of profit | 249000 | -124500 | -83000 | -41500 |
| New Balances | 0 | -50100 | 84400 | 88700 |
| Cash | ||||
| Cash balance, beginning | 72200 | |||
| Sale of inventory | 301800 | |||
| Cash paid by Kendra | 50100 | |||
| Total Cash available | 424100 | |||
| Payment of liabilities | -251000 | |||
| Balance cash available | 173100 | |||
| Cash | Kendra | Cogley | Mei | |
| Balances | 173100 | 0 | 84400 | 88700 |
| Cash distributed | -173100 | 34620 | 77895 | 60585 |
| Kendra | Cogley | Mei | Total | |
| Original capital balances | 74400 | 167400 | 130200 | 372000 |
| 20% | 45% | 35% |
7.
| Inventory Balance | 550800 | |||
| Sale value | 282000 | |||
| Profit on sale | -268800 | |||
| Total | Kendra | Cogley | Mei | |
| -268800 | 74400 | 167400 | 130200 | |
| Distribution of loss | 268800 | -134400 | -89600 | -44800 |
| New Balances | 0 | -60000 | 77800 | 85400 |
| Distribution of deficit | 60000 | -40000 | -20000 | |
| 0 | 37800 | 65400 |
8.
| a. Sale of inventory | ||
| Account Title | Debit | Credit |
| Cash | 282000 | |
| Loss on sale of inventory | 268800 | |
| Inventory | 550800 | |
| b. Distribution of loss to partners | ||
| Account Title | Debit | Credit |
| Kendra. Capital | 134400 | |
| Cogley, Capital | 89600 | |
| Mei, Capital | 44800 | |
| Loss on sale of inventory | 268800 | |
| c. Allocation of deficit of Kendra to others | ||
| Account Title | Debit | Credit |
| Cogley, Capital | 40000 | |
| Mei, capital | 20000 | |
| Kendra, Capital | 60000 | |
| d. Payment of liabilities | ||
| Account Title | Debit | Credit |
| Accounts Payable | 251000 | |
| Cash | 251000 | |
| e. Distribution of remaining cash | ||
| Account Title | Debit | Credit |
| Cogley, Capital | 37800 | |
| Mei, Capital | 65400 | |
| Cash | 103200 | |
Working:
| Cash | ||||
| Cash balance, beginning | 72200 | |||
| Sale of inventory | 282000 | |||
| Total Cash available | 354200 | |||
| Payment of liabilities | -251000 | |||
| Balance cash available | 103200 | |||
| Cash | Kendra | Cogley | Mei | |
| Balances | 103200 | 0 | 37800 | 65400 |
| Cash distributed | -103200 | 0 | -37800 | -65400 |
ekkarill92 answered 1 year agoRelated Solutions
Please solve part 5 to 8 Kendra, Cogley, and Mei share income and loss in a...
Please solve part 5 to 8
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
$
72,200
Accounts payable
$
251,000
Inventory
550,800
Kendra, Capital
74,400
Cogley, Capital
167,400
Mei, Capital
130,200
Total assets
$
623,000
Total liabilities and
equity
$
623,000
Required:
For each...
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided...
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
$
82,600
Accounts payable
$
246,000
Inventory
539,400
Kendra, Capital
75,200
Cogley, Capital
169,200
Mei, Capital
131,600
Total assets
$
622,000
Total liabilities and equity
$
622,000
Required:
For each of the following scenarios, complete...
Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss...
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
$
103,900
Accounts
payable
$
258,000
Inventory
537,600
Kendra,
Capital
76,700
Cogley,
Capital
172,575
Mei,
Capital
134,225
Total
assets
$
641,500
Total
liabilities and equity
$
641,500...
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided...
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
$
93,400
Accounts payable
$
247,000
Inventory
537,600
Kendra, Capital
76,800
Cogley, Capital
172,800
Mei, Capital
134,400
Total assets
$
631,000
Total liabilities and
equity
$
631,000
Required:
For each of the following scenarios, complete...
Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss...
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
$
93,400
Accounts payable
$
247,000
Inventory
537,600
Kendra, Capital
76,800
Cogley, Capital
172,800
Mei, Capital
134,400
Total assets
$
631,000
Total liabilities and
equity
$
631,000...
Problem 12-6A Liquidation of a partnership LO P5 Kendra, Cogley, and Mei share income and loss...
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
$
84,800
Accounts payable
$
252,000
Inventory
538,200
Kendra, Capital
74,200
Cogley, Capital
166,950
Mei, Capital
129,850
Total assets
$
623,000
Total liabilities and equity
$
623,000...
Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided...
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 $ 83,500 Accounts payable $ 252,500 Inventory 549,000 Kendra,
Capital 76,000 Cogley, Capital 171,000 Mei, Capital 133,000 Total
assets $ 632,500 Total liabilities and equity $ 632,500 Required:
For each of the following scenarios, complete the...
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in...
Meir, Benson, and Lau are partners and share income and loss in
a 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and Lau, 50%).
The partnership's capital balances are as follows: Meir, $28,000;
Benson, $119,000; and Lau, $153,000. Benson decides to withdraw
from the partnership.
1. Prepare the journal entry to record Benson's
withdrawal under each independent assumptions. (Do not
round intermediate calculations.)
(a) Benson sells her interest to North for $160,000 after
North is approved as a partner;
(b)...
Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in...
Meir, Benson, and Lau are partners and share income and loss in
a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50%).
The partnership's capital balances are as follows: Meir, $48,000;
Benson, $74,000; and Lau, $128,000. Benson decides to withdraw from
the partnership. 1. Prepare the journal entry to record Benson's
withdrawal under each independent assumptions. (Do not round
intermediate calculations.) (a) Benson sells her interest to North
for $160,000 after North is approved as a partner; (b)...
Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio. The...
Meir, Benson, and Lau are partners and share income and loss in
a 1:4:5 ratio. The partnership's capital balances are as follows:
Meir, $38,000; Benson, $159,000; and Lau, $203,000. Benson decides
to withdraw from the partnership, and the partners agree not to
have the assets revalued upon Benson's retirement. Assume that
Benson does not retire from the partnership described in Part 1.
Instead, Rhode is admitted to the partnership on February 1 with a
25% equity. Prepare journal entries to...
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