Admitting New Partner Instructions Chart of Accounts Labels and Amount Descriptions Journal Instructions Balance Sheet Musa Moshref and Shaniqua Hollins have operated a successful firm for many years, sharing net income and net losses equally. Taylor Anderson is to be admitted to the partnership on July 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 June 30, except for the following: Accounts receivable amounting to $2,700 are to be written off, and the allowance for doubtful accounts is to be increased to 5% of the remaining accounts. Merchandise inventory is to be valued at $77,300. Equipment is to be valued at $156,500. b. Anderson is to purchase $70,800 of the ownership interest of Hollins for $75,000 cash and to contribute another $44,900 cash to the partnership for a total ownership equity of $115,700. The post-closing trial balance of Moshref and Hollins as of June 30 is as follows: 1 Cash 2 Accounts Receivable Moshref and Hollins POST-CLOSING TRIAL BALANCE June 30, 2017 ACCOUNT TITLE DEBIT CREDIT 8,000.00 42,400.00