=+c. The income-sharing ratio of Cates, Orr, and Webster is to be 2:1:1.

The post-closing trial balance of Cates and Orr as of May 31 follows.

Cates and Orr Post-Closing Trial Balance May 31, 2010 Debit Credit Balances Balances Cash 9,400 Accounts Receivable 21,400 Allowance for Doubtful Accounts 500 Merchandise Inventory 58,600 Prepaid Insurance 3,500 Equipment 95,000 Accumulated Depreciation—Equipment 25,700 Accounts Payable 14,700 Notes Payable 12,000 Jordan Cates, Capital 75,000 LaToya Orr, Capital 60,000 _______ _______ 187,900 187,900 _______ _______ _______ _______ Instructions 1. Journalize the entries as of May 31 to record the revaluations, using a temporary account entitled Asset Revaluations. The balance in the accumulated depreciation account is to be eliminated.