Quick, Drake, and Sage 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.
QUICK, DRAKE, AND SAGE
Balance Sheet
May 31
Assets Liabilities and Equity
Cash $ 90,400 Accounts payable $ 122,750
Inventory 268,600 Quick, Capital 46,500
Drake, Capital 106,250
Sage, Capital 83,500
Total assets $ 359,000 Total liabilities and equity $ 359,000
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.