=+PR 12-6A Statement of partnership liquidation obj. 4 Problems Series B On August 1, 2010, Jarius Walker and Rae King form a partnership. Walker agrees to invest $18,200 in cash and merchandise inventory valued at $48,800. King invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $60,000. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow:

King’s Ledger Agreed-Upon Balance Valuation Accounts Receivable $25,300 $24,100 Allowance for Doubtful Accounts 1,500 1,800 Equipment 92,300 55,100 Accumulated Depreciation—Equipment 35,600 Accounts Payable 15,000 15,000 Notes Payable 25,000 25,000 The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,500

(Walker) and $30,400 (King), and the remainder equally.

Instructions