Print le Book Brian Caldwell and Adriana Estrada have operated a successful firm for many years, sharing net income and net losses equally, Kris Mays is o be admitted to the partnership on September 1 of the current year, in accordance with the following agreement: 2. Assets and abilities of the old partnership are to be valued at their book values as of August 31, except for the following: Accounts recolvable amounting to $2,800 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 $70,600. Equipment is to be valued at $162,100 b. Mays is to purchase $67,000 of the ownership Interest of Estrada for $73,000 cash and to contribute $36,000 cash to the partnership for a total ownership equity of $103,000 The post-closing trial balance of Caldwelt and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 2019 Credit Debit Balances Balances 7,000 Cash 43,000 1,600 66,000 2.400 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable 188,000 58,200 15,500 44,000 100,000 Notes Payable (current) Brian Caldwell, Capital Adriana Estrada, Capital 87.000 306,400 306,400 Required: 1. Journalize the entries as of August 31 to record the revaluations, 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. Mer Journalizing the revaluations, close the balance of the asset revaluations account to the capital accounts Bean 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 II DII II DE Aug 31 Equipment Aug. 31-Close 2. Journalize the additional entries to record Mays' entrance to the partnership on September 1, 2019. If an amount box does not an entry, leave it blank. 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, 2019 Assets Current assets Total current assets Property, plant, and equipment: Q ON Total assets Les Current liabilities: Total liabilities Partners Equity Total partners equity Yotalities and partners equity Print le Book Brian Caldwell and Adriana Estrada have operated a successful firm for many years, sharing net income and net losses equally, Kris Mays is o be admitted to the partnership on September 1 of the current year, in accordance with the following agreement: 2. Assets and abilities of the old partnership are to be valued at their book values as of August 31, except for the following: Accounts recolvable amounting to $2,800 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 $70,600. Equipment is to be valued at $162,100 b. Mays is to purchase $67,000 of the ownership Interest of Estrada for $73,000 cash and to contribute $36,000 cash to the partnership for a total ownership equity of $103,000 The post-closing trial balance of Caldwelt and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 2019 Credit Debit Balances Balances 7,000 Cash 43,000 1,600 66,000 2.400 Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable 188,000 58,200 15,500 44,000 100,000 Notes Payable (current) Brian Caldwell, Capital Adriana Estrada, Capital 87.000 306,400 306,400 Required: 1. Journalize the entries as of August 31 to record the revaluations, 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. Mer Journalizing the revaluations, close the balance of the asset revaluations account to the capital accounts Bean 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 II DII II DE Aug 31 Equipment Aug. 31-Close 2. Journalize the additional entries to record Mays' entrance to the partnership on September 1, 2019. If an amount box does not an entry, leave it blank. 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, 2019 Assets Current assets Total current assets Property, plant, and equipment: Q ON Total assets Les Current liabilities: Total liabilities Partners Equity Total partners equity Yotalities and partners equity
