Owens plans to enter into a partnership with Cathy Turner, effective January 1, 20X2. Profits and losses will be shared equally. Owens is to transfer all assets and liabilities of his store to the partnership after revaluation as agreed. Turner will invest cash equal to Owenss investment after revaluation. The agreed values are Accounts Receivable (net), $13,100 Merchandise Inventory, $48,500 and Furniture and Equipment, $10,900. The partnership will operate as Owens and Turner Anglers Outpost.

Owens Tackle Center
Postclosing Trial Balance
December 31, 20X1
Account Name	Debit		Credit
Cash	$3,350
Accounts Receivable	14,300
Allowance for Doubtful Accounts			$2,900
Merchandise Inventory	43,600
Furniture and Equipment	27,700
Accumulated Depreciation			21,600
Accounts Payable			2,600
Capital			61,850
Totals	$88,950		$88,950

Required:

1. In general journal form, prepare the entries to record:
2. The receipt of Owenss investment of assets and liabilities by the partnership.
3. The receipt of Turners investment of cash.
4. Prepare a balance sheet for Owens and Turner Anglers Outpost just after the investments.

Analyze: By what net amount were the net assets of Owens Tackle Center adjusted before they were transferred to the partnership?