On January 1, 2011, Adam Cooper and Brett Harken form a partnership (C&H Variety Shop) Adam agrees to invest $37,400 in cash and merchandise inventory valued at $58,000. Brett invests the following: cash of $13,000; Accounts Receivable with a face amount of $136,000 ($6,000 are worthless) and an allowance account of $8,400, merchandise inventory with a cost of $90,000 (FMV $84,700); and equipment with a cost of $155,000 (FMV of $69,000) with a Note Payable of $11,000. They agreed to the following provisions in their Partnership contract: Annual Salary Allowances of $48,000 for Adam and $36,000 for Brett 10% Interest of their beginning Capital Balances per year. Split remaining income 3:2 During their first year of operation, they had Net Income of $251,000. Adam withdrew $48,000 during the year; Brett withdrew $18,000. 1 Journalize each partner's contributions on January 1, 2011. (PARTNERSHIP FORMATION) 2. Divide the 2011 Net Income between the two partners and calculate their capital balances as of January 1, 2012 (DIVISION OF INCOME) 3. On January 1, 2012, Brett, with the consent of Adam, sells one-half of his interest to Kaci Oliver for $150,000. The partners' new income-sharing ratio is 3:1:1. After evaluation, it was determined that the book values of the partnership assets reflect their market values (no revaluation necessary at this time). Journalize the entry required for this transaction. (ADMITTING NEW PARTNER WHO BUYS AN INTEREST 4. On December 31, 2012, Adam Cooper retires from the C&H Variety Shop. After closing the accounts, the capital balances of the partners are as follows: Adam Cooper $245,000 . Brett Harken $175,000 Kaci Oliver $175,000 5. The partners agree that the merchandise inventory should be increased by 54,300 and the Allowance for Doubtful Accounts should be increased by $1,200. Adam agrees to accept a note for $200,000 in partial settlement of his ownership equity. The remainder of his equity is to be paid in cash. Brett and Kaci are to share equally in the net income or loss of the new partnership. Journalize the entries to record (a) the adjustment of the assets to bring them into agreement with current market prices and (b) the withdrawal of Adam from the partnership. (REVALUATION OF ASSETS & PARTNERSHIP WITHDRAWAL Brett and Kaci have agreed to dissolve their partnership on December 31, 2013. After closing the books for the year of 2013, the capital balances of Brett and Kaci are $300,000 and $255,000 respectively Cash, noncash assets, and liabilities total $171,000, $407,500, and $23,500 respectively. The noncash assets were sold for $500,000. Liabilities have been paid and cash distributed to the partners Prepare a