Following is a balance sheet for the partnership business of Amy, Lucy, and John:

Assets	Amount ($)	Liabilities & Equity	Amount ($)
Cash	50,000	A/P	10,000
Inventory	45,000	N/P	50,000
Land	60,000
Building 230,000 Acc. Dep. 60,000	170,000	Amy's Capital Lucy's Capital John's Capital	130,000 80,000 55,000
Total	325,000	Total	325,000

The profit and loss sharing ratio between Amy, Lucy, and John was 2:1:1 respectively. Suppose John is retiring during the year. The appraisal of assets shows that current market value of inventory is $35000, while land valued at $92000.

Required:

Record the journal entries for appraisal of assets and John's retirement if he received $35000 in cash and a note payable of $55000.