Question

Kendra, 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. Required
Prepare journal entries for (a) the sale of inventory, (b) the allocation of its gain or loss, (c) the payment
of liabilities at book value, and (d) the distribution of cash in each of the following separate cases:
Inventory is sold for (1) $600,000; (2) $500,000; (3) $320,000 and partners with deficits pay their deficits
in cash; and (4) $250,000 and partners with deficits do not pay their deficits. (Round to the nearest dollar.) 

Balance Sheet
Assets
Llabilities
Cash
$180,800
Accounts payable ...
$245,500
Inventory
537,200
Equity
......-
Kendra, Capital
93,000
Cogley, Capital
212,500
Mei, Capital..
Total liabilities and equity
167,000
Total assets
$718,000
$718,000
Expand
Transcribed Image Text

Balance Sheet Assets Llabilities Cash $180,800 Accounts payable ... $245,500 Inventory 537,200 Equity ......- Kendra, Capital 93,000 Cogley, Capital 212,500 Mei, Capital.. Total liabilities and equity 167,000 Total assets $718,000 $718,000

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