Endra, Cogley, and Mei share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mei, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows.
Balance Sheet
Assets Liabilities
Cash $ 180,800 Accounts payable $ 245,500
Inventory 537,200 Equity
Kendra, Capital 93,000
Cogley, Capital 212,500
Mei, Capital 167,000
Total assets $ 718,000 Total liabilities and equity $ 718,000
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.
Note: Do not round intermediate calculations. Enter losses and partner deficits, if any, as negative amounts.
Inventory is sold for $600,000.
Inventory is sold for $500,000.
Inventory is sold for $320,000 and partners with deficits pay their deficits in cash.
Inventory is sold for $250,000 and partners with deficits do not pay their deficits.