Fundamental Accounting Principles: P12-5A Quick, Drake, and Sage share income and loss

Fundamental Accounting Principles

P12-5A Liquidation of a Partnership
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 & 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. Inventory is sold for 1) $300,000, 2) $250,000, 3) $160,000 and any partners with capital deficits pay in the amount of their deficits, and 4) $125,000 and the partners have no assets other than those invested in the partnership. (round to the nearest dollar)
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