Book Print item dimitting New Partner Brian Caldwell and Adriana 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 receivable amounting to $2,400 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 $64,300. Equipment is to be valued at $145,800. b. Mays is to purchase $61,000 of the ownership interest of Estrada for $66,000 cash and to contribute $33,000 cash to the partnership for a total ownership equity or $94,000. The post-closing trial balance of Caldwell and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 2049 Debit Balances Credit Balances Cat 6,400 Accounts Receivable 39,200 1,400 Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Equipment 60,100 2,200 169,000 Accumulated Depreciation Equipment Accounts Payable $2,400 13,100 Check My Workmore Check My Works remaining Previous All work saved Email Instructor Save and Submit Algiment for Gradine Upd eBook Printem sayur Notes Payable (current) 15100 40,000 Brian Caldwell, Capital 91,000 Adriana Estrada, Capital 29,000 276,900 276,900 Required: 1. Journalize the entries as of August 31 to record the evaluations, 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 Aug. 31-Accounts Receivable Aug, 31-Merchandise Inventory II III II III II III II Aug. 31-Equipment Aug. 31-Close Check My Work 3 more Check My Worce uses remaining Previous Next > All worked Emaltratructor Save and Et Submit Assignment for Grading Book Printem Aug. 31-Close 2. Joumalize the additional entries to record Mays entrance to the partnership on September 1, 2049. If an amount box does not require an entry, leave it bank Sept. 1-Purchase capital Sept. 1-Contribute cash 3. Present a balance sheet for the new partnership as of September 1, 2049, Caldwell, Estrada, and Mays Balance Sheet September 1, 2049 Assets Current asts: Previous Next > Check My Work more Check My Works romaining All work savel Email instructor Save and Exit Submit Assignment for Grading Total current assets Property, plant, and equipment: Total assets Liabilities Current liabilities: Total liabilities 0 Partners Equity Total partners' equity Total abilities and partners' equity Check My Work 3 mare Check My Work uses remaining
