Admitting New Partner

a$.$ Assets and liabilities of the old partnership are to be valued at their book values as of August $31,$ except for the following:

Accounts receivable amounting to $$2,800$ are to be written off, and the allowance for doubtful accounts is to be increased to $5\%$ of the remaining accounts.

Inventory is to be valued at $$73,400.$

Equipment is to be valued at $$159,500.$

b$.$ Mays is to purchase $$69,000$ of the ownership interest of Estrada for $$75,000$ cash and to contribute $$37,000$ cash to the partnership for a total ownership equity of $$106,000.$

The post$-$closing trial balance of Caldwell and Estrada as of August $31$ follows:

Caldwell and Estrada

Post$-$Closing Trial Balance

August $31,20Y9$

Required:

revaluations, close the balance of the asset revaluations account to the capital accounts of Brian Caldwell and Adriana Estrada. If an amount box does not require an entry, leave it blank.

Present a balance sheet for the new partnership as of September $1,20Y9.$

Caldwell, Estrada, and Mays

Balance Sheet

September $1,20$ Y$9$

$\begin{array}{cc}\text{S}\text{e}\text{p}\text{t}\text{e}\text{m}\text{b}\text{e}\text{r}1& 20Yg\\ \text{L}\text{i}\text{n}\text{e}\text{I}\text{t}\text{e}\text{m}\text{D}\text{e}\text{s}\text{c}\text{r}\text{i}\text{p}\text{t}\text{i}\text{o}\text{n}\text{A}\text{m}\text{o}\text{u}\text{n}\text{t}\text{A}\text{m}\text{o}\text{u}\text{n}\text{t}\text{A}\text{m}\text{o}\text{u}\text{n}\text{t}& ?\end{array}$

Assets

Current assets:

Property, plant, and equipment:

Total assets

Liabilities

Current liabilities:

Total partners' equity

Total liabilities and partners' equity