Simpson, Locke, and Job each have a $27,000 Capital balance. Simpson is retiring from the business. The

Question:

Simpson, Locke, and Job each have a $27,000 Capital balance. Simpson is retiring from the business. The partners agree to revalue the assets at current market value. A real estate appraiser values the land at $70,000 (book value is $50,000). The profit-and-loss ratio is 1:2:1. Journalize
(a) The revaluation of the land on July 31,
(b) A payment of $32,000 to Simpson upon his retirement the same day.