Instructions 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 $2,500 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 $76,200. Equipment is to be valued at $156,200. b. Anderson is to purchase $69,900 of the ownership interest of Hollins for $75,500 cash and to contribute another $46,000 cash to the partnership for a total ownership equity of $115,900. The post-closing trial balance of Moshref and Hollins as of June 30 is as follows: The post-closing trial balance of Moshref and Hollins as of June 30 is as follows: Moshref and Hollins POST-CLOSING TRIAL BALANCE June 30, 2017 ACCOUNT TITLE DEBIT CREDIT 1 Cash 8,400.00 2 Accounts Receivable 42,300.00 3 Allowance for Doubtful Accounts 1,690.00 4 Merchandise Inventory 72, 5 Prepaid Insurance 2,900.00 6 Equipment 180,300.00 7 Accumulated Depreciation-Equipment 43,300.00 8 Accounts Payable 21,500.00 9 Notes Payable (current) 34,100.00 10 Musa Moshref, Capital 121,910.00 11 Shaniqua Hollins, Capital 84,000.00 12 Totals 306,500.00 306,500.00 Required: 1. Journalize the entries as of June 30 to record the revaluations, using a temporary account entitled Asset Revaluations. 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 Musa Moshref and Shaniqua Hollins. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 2. Journalize the additional entries to record Anderson's entrance to the partnership on July 1, 2017. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. Present a balance sheet for the new partnership as of July 1, 20Y7. Be sure to complete the statement heading. Refer to the chart of accounts and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Less, Add, or colons () will automatically appear if required. Enter property, plant, and equipment in the order of land, building, and office equipment. Enter all amounts as positive numbers. ASSETS REVENUE 110 Cash 410 Revenues 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 113 Allowance for Doubtful Accounts EXPENSES 114 Interest Receivable 510 Cost of Merchandise Sold 115 Notes Receivable 520 Salary Expense 116 Merchandise Inventory 521 Advertising Expense 117 Supplies 523 Depreciation Expense-Equipment 118 Office Supplies 526 Repairs Expense 119 Prepaid Insurance 529 Selling Expenses 531 Rent Expense 125 Equipment 126 Accumulated Depreciation-Equipment 533 Insurance Expense 129 Asset Revaluations 534 Supplies Expense 133 Patent 535 Office Supplies Expense 536 Credit Card Expense LIABILITIES 537 Cash Short and Over 210 Accounts Payable 538 Property Tax Expense 211 Salaries Payable 539 Miscellaneous Expense 213 Sales Tax Payable 710 Interest Expense 214 Interest Payable 215 Notes Payable EQUITY Labels Current assets Current liabilities For the Year Ended July 1, 2017 July 1, 2047 Property, plant, and equipment Amount Descriptions Total assets Total current assets Total liabilities Total liabilities and members' equity Total liabilities and partners' equity Total members' equity Total partners' equity 1. Journalize the entries as of June 30 to record the revaluations, using a temporary account entitled Asset Revaluations. 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 Musa Moshref and Shaniqua Hollins.* 2. Journalize the additional entries to record Anderson's entrance to the partnership on July 1, 2017.* *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 8 9 10 11 12 Liabilities 13 (Label) 14 15 16 17 Partners' Equity 18 19 20 21 22