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.
assets: cash 77800, inventory 544,200, total assets 62,000
liabilities: accounts payable 245,500, kendra capital 75300, coogley capital 169425, mei capital 131,775 total liabilities and equity 622,000
For each of the scenarios complete the schedule allocating the gain or loss on the sale of inventory prepare entries to recording transactions 1-4
1. inventory is sold for 622,800
2. inventory is sold for 454,800
3. inventory is sold for 330,600 and any partners with capital deficits pay in amount of their deficits.
4. inventory is sold for 245,000 and the partners have no assets other than those invested in the partnership