Kendra, Cogley, and Mel share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mel, 16). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $ 614,000 Total liabilities and equity Assets Cash Inventory $ 68,600 545,400 Liabilities Equity $ 242,500 74,300 167,175 130,025 $ 614,000 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. 1. Inventory is sold for $624,600. 2. Inventory is sold for $433,200. 3. Inventory is sold for $312,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $241,800 and partners with deficits do not pay their deficits.

Kendra, Cogley, and Mel share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mel, 16). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total assets $ 614,000 Total liabilities and equity Assets Cash Inventory $ 68,600 545,400 Liabilities Equity $ 242,500 74,300 167,175 130,025 $ 614,000 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. 1. Inventory is sold for $624,600. 2. Inventory is sold for $433,200. 3. Inventory is sold for $312,600 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $241,800 and partners with deficits do not pay their deficits.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter21: Partnerships

Section: Chapter Questions

Problem 65P

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Kendra, Cogley, and Mel share Income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley, 2/6; and Mel, 1/6). The partners have decided to liquidate their partnership. On the day of liquidation, their balance sheet appears as follows. Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital $631,000 Total liabilities and equity Cash Inventory Assets Total assets $ 89,200 541,800 Required 1 Inventory 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. Enter losses and partner deficits, if any, as negative amounts.) 1 2 1. Inventory is sold for $604,200. 2. Inventory is sold for $424,200. 3. Inventory is sold for $307,800 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $262,200 and partners with deficits do not pay their deficits. Required 2 Inventory Required…
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. Assets Cash Inventory Total assets $ 76,400 552,600 $ 629,000 Balance Sheet Accounts payable Kendra, Capital Cogley, Capital Mei, Capital Total liabilities and equity Liabilities Equity $ 247,000 76,400 171,900 133,700 $ 629,000 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. 1. Inventory is sold for $608,400. 2. Inventory is sold for $426,600. 3. Inventory is sold for $349,200 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $258,600 and partners with deficits do not pay…
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. Balance Sheet Assets Liabilities Accounts payable $ 253,500 Cash Inventory $78,700 547,800 Equity Kendra, Capital Cogley, Capital Mei, Capital 74,600 167,850 130, 550 Total assets $ 626,500 Total liabilities and equity $ 626,500 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. Enter losses and partner deficits, if any, as negative amounts.) 1. Inventory is sold for $607,800. 2. Inventory is sold for $450,000. 3. Inventory is sold for $319,800 and partners with deficits pay their deficits in cash. 4. Inventory is sold for $243,000 and partners with deficits do not pay their…
Required: Prepare the statement of liquidation.. Vic, Victor and Vincent are partners in Valentine partnership. They share profits and losses equally. Their financial position prior to liquidation follows: Lump-sum Liquidation Partnership is insolvent and partner/s are personally insolvent. Exercise 3. Valentine Partnership Statement of Financial Position As at August 31, 20xx Assets Liabilities and Capital P 80,000 800,000 Liabilities Cash Non-cash Assets P 480,000 40,000 Vic, Capital Victor, Capital Vincent, Capital Total Liabilities and Capital P 880.000 120,000 240.000 Total Assets P 880,000 The personal assets and liabilities of the partners, beside their equities in the partnership, are as follows: Personal Assets Personal Liabilities Partners P800,000 P500,000 : P 40,000 P300,000 P500,000 Vic Victor P140,000 Vincent Solvent partners are going to invest when cash is needed. Non-cash assets are sold for P425,000. Liabilities in the amount of P480,000 are paid.
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