In: Accounting
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 |
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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.)
(3) Inventory is sold for $327,600 and any
partners with capital deficits pay in the amount of their
deficits.
(4) Inventory is sold for $259,800 and the
partners have no assets other than those invested in the
partnership.
Complete the schedule allocating the gain or loss on the sale of inventory is $327,600 and any partners with capital deficits pay in the amount of their deficits.
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Journal entry worksheet
Record the sale of inventory.
Note: Enter debits before credits.
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Journal entry worksheet
Allocate the gain(loss) on the sale of inventory to the partners.
Note: Enter debits before credits.
Journal entry worksheet The partner(s) with deficit balances repay the amount of their deficit(s). Note: Enter debits before credits.
Journal entry worksheet Record the payment of the liabilities. Note: Enter debits before credits.
Journal entry worksheet Record the disbursement of the remaining cash to the partners. Note: Enter debits before credits.
Complete the schedule allocating the gain or loss on the sale of inventory $259,800 and the partners have no assets other than those invested in the partnership.
Journal entry worksheet Record the sale of inventory for $259,800. Note: Enter debits before credits.
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