Question
In: Accounting
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 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 $624,000.
(2) Inventory is sold for $438,000.
Complete this question by entering your answers in the tabs below.
Required 1 Inventory
Required 1 GJ
Required 2 Inventory
Required 2 GJ
Required 3 Inventory
Required 3 GJ
Required 4 Inventory
Required 4 GJ
Complete the schedule allocating the gain or loss on the sale of inventory is $624,000.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Journal entry worksheet
Record the sale of inventory.
Note: Enter debits before credits.
Journal entry worksheet Allocate the gain(loss) on the sale of inventory to the partners. Note: Enter debits before credits.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solutions
Expert Solution
| Step 1) Determination of Gain (Loss) | |||||||||||||||||||
| Proceeds from the sale of inventory | 6,24,000 | ||||||||||||||||||
| Inventory cost | 537600 | ||||||||||||||||||
| 86,400 | |||||||||||||||||||
| Step 2) Allocation of the Gain (Loss) to the Partners. | |||||||||||||||||||
| KENDRA | COGLEY | MEI | Total | ||||||||||||||||
| Initial capital balances | 76,800 | 1,72,800 | 1,34,400 | 3,84,000 | |||||||||||||||
| Allocation of gains (losses) | 43200 | 28800 | 14400 | 86400 | |||||||||||||||
| Capital balances after gains (losses) | 1,20,000 | 2,01,600 | 1,48,800 | 4,70,400 | |||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Record the sale of inventory. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (a) | Cash | 624000 | |||||||||||||||||
| Inventory | 537600 | ||||||||||||||||||
| Gain on sale of Inventory | 86400 | ||||||||||||||||||
| To record the sale of Inventory with gain | |||||||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Allocate the gain(loss) on the sale of inventory to the partners. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (b) | Gain on sale of Inventory | 86400 | |||||||||||||||||
| Kendra, capital | 43200 | ||||||||||||||||||
| Cogley, capital | 28800 | ||||||||||||||||||
| Mei, capital | 14400 | ||||||||||||||||||
| To record the disbursement of gain on sale of Inventory | |||||||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Record the payment of the liabilities. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (c) | Accounts Payable | 247000 | |||||||||||||||||
| Cash | 247000 | ||||||||||||||||||
| To record the payment towards accounts payable | |||||||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Record the disbursement of the remaining cash to the partners. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (d) | Kendra, capital | 235200 | |||||||||||||||||
| Cogley, capital | 156800 | ||||||||||||||||||
| Mei, capital | 78400 | ||||||||||||||||||
| Cash | 470400 | ||||||||||||||||||
| To record disbursement of remaining cash to partners | |||||||||||||||||||
| Complete the schedule allocating the gain or loss on the sale of inventory is 438,000. | |||||||||||||||||||
| Step 1) Determination of Gain (Loss) | |||||||||||||||||||
| Proceeds from the sale of inventory | 4,38,000 | ||||||||||||||||||
| Inventory cost | 537600 | ||||||||||||||||||
| Loss | -99,600 | ||||||||||||||||||
| Step 2) Allocation of the gain (Loss) to the Partners. | |||||||||||||||||||
| KENDRA | COGLEY | MEI | Total | ||||||||||||||||
| Initial capital balances | 76,800 | 1,72,800 | 1,34,400 | 3,84,000 | |||||||||||||||
| Allocation of gains (losses) | -49800 | -33200 | -16600 | -99,600 | |||||||||||||||
| Capital balances after gains (losses) | 27,000 | 1,39,600 | 1,17,800 | 2,84,400 | |||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Record the sale of inventory. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (a) | |||||||||||||||||||
| Cash | 438000 | ||||||||||||||||||
| Loss on sale of Inventory | 99600 | ||||||||||||||||||
| Inventory | 537600 | ||||||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Allocate the gain(loss) on the sale of inventory to the partners. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (b) | Kendra, capital | 49800 | |||||||||||||||||
| Cogley, capital | 33200 | ||||||||||||||||||
| Mei, capital | 16600 | ||||||||||||||||||
| Loss on sale of Inventory | 99600 | ||||||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Record the payment of the liabilities. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (c) | Accounts payable | 247000 | |||||||||||||||||
| Cash | 247000 | ||||||||||||||||||
| To record the payment towards the accounts payable | |||||||||||||||||||
| Journal entry worksheet | |||||||||||||||||||
| Record the disbursement of the remaining cash to the partners. | |||||||||||||||||||
| Note: Enter debits before credits. | |||||||||||||||||||
| Transaction | General Journal | Debit | Credit | ||||||||||||||||
| (d) | Kendra, capital | 142200 | |||||||||||||||||
| Cogley, capital | 94800 | ||||||||||||||||||
| Mei, capital | 47400 | ||||||||||||||||||
| Cash | 284400 | ||||||||||||||||||
| To record the disbursement of remaining cash to partners | |||||||||||||||||||
ekkarill92 answered 1 year agoRelated Solutions
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...
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...
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...
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...
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...
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...
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 2:3:5 ratio. The...
Meir, Benson, and Lau are partners and share income and loss in
a 2:3:5 ratio. The partnership's capital balances are as follows:
Meir, $68,000; Benson, $104,000; and Lau, $178,000. 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...
Turner, Roth, and Lowe are partners who share income and loss in a 2:3:5 ratio (in...
Turner, Roth, and Lowe are partners who share income and loss in
a 2:3:5 ratio (in percents: Turner, 20%; Roth, 30%; and Lowe, 50%).
The partners decide to liquidate the partnership. Immediately
before liquidation, the partnership balance sheet shows total
assets, $133,200; total liabilities, $84,000; Turner, Capital,
$3,100; Roth, Capital, $14,300; and Lowe, Capital, $31,800. Cash
received from selling the assets was sufficient to repay all but
$31,000 to the creditors. Required: a. Calculate the loss from
selling the assets....
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose Rialto is the only movie cinema in a small college town, so it is essentially...
- With VMI, members of the supply chain share planning, demand, forecasting, and inventory information.
- Large lots are desirable in supply chain coordination despite increasing holding costs.
- ***Convert the C++ to Python*** #include <iostream> using std::cout; using std::cin; using std::endl; int charClass; char...
- Make-or-Buy Decision Fremont Computer Company has been purchasing carrying cases for its portable computers at a...
- The following costs were incurred for the single product produced during the first year of operations...
- Non-constant growth model: Do=$2.00 required return on equity= 5% g= 9% n=1,2 g=7% n=3,4 g=3% n=5...
ADVERTISEMENT