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Admitting New Partner Brian Caldwell and Adriano Estrada have operated a successful firm for many years, sharing net income and net losses, equally. Kris Mays

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Admitting New Partner Brian Caldwell and Adriano Estrada have operated a successful firm for many years, sharing net income and net losses, equally. Kris Mays is to be admitted to the partnership on September 1 of the current year, in accordance with the following agreement: 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 recelvable amounting to $2,200 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 $56,500. - Equipment is to be valued at $129,400. b. Mays is to purchase $54,000 of the ownership interest of tstrada for $59,000 cash and to contribute $29,000 cash to the portnership for a totat ownership equity of $83,000. The post-closing trial balance of Caldwell and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance 1. Journalize the entries as of August 31 to record the revaluations, using a temporary account entitied Asset Revaluations. Debits and credits to the asset revaluations account are losses and gains from revaluation, respectively. The balance in the accumulated depreciation account is to be eliminated, After journalizing the revaluations, dose the balance of the asset revaluations account to the capital accounts of Brian Caldwelt and Adriana Estrado. If an amount box does not require an entry, leave it: blank. 1. Journalize the entries as of August 31 to record the revaluations, using a temporary account entitled Asset Revaluations. Debits and credits to the asset revaluations account are losses and gains from revaluation, respectively. The balance in the accumulated depreciation account is to be eliminated. After journalizing the 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. 2. Journalize the additional entries to record Mays' entrance to the partnership on September 1, 20Y9. If an amount box does not require an entry, leave it biank. Sept. 1-Purchase captal 3. Present a balance sheet for the new partnership as of september 1,20r9 Assets Current assets: Total current assets Property, plant, and equipment: Total assets Liabilities Current liabilities: Total liabilities Partners' Equity Total partners' equity Total flabllities and partners' equity

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