The balance sheet of Adams Pharmacy after the revenue, expense, and partners$$ drawing accounts have been closed on December $31,20$X$1,$ follows:

ADAMS PHARMACY

Balance Sheet

December $31,20$X$1$

Assets

Cash $ $81,700$

Accounts Receivable $15,300$

Merchandise Inventory $409,500$

Equipment $ $157,000$

Accumulated Depreciation$$Equipment $92,50064,500$

Building $386,000$

Accumulated Depreciation$$Building $313,00073,000$

Land $33,000$

Total Assets $ $677,000$

Liabilities and Partners' Equity

Liabilities

Accounts Payable $ $396,500$

Taxes Payable $21,500$

Total Liabilities $418,000$

Partners$$ Equity

Larry Adams, Capital $ $153,000$

Hazel Adams, Capital $53,000$

Isiah Adams, Capital $53,000$

Total Partners$$ Equity $259,000$

Total Liabilities and Partners' Equity $ $677,000$

On that date, Larry Adams, Hazel Adams, and Isiah Adams agree to admit Vickie Neal to the partnership. The partnership agreement provides that, in case of dissolution of the partnership, all assets and liabilities should be revalued. Profits and losses are shared in the ratio of $50$:$25$:$25,$ to Larry, Hazel, and Isiah, respectively. The agreed$-$upon values of the assets are as follows:

Accounts receivable $ $13,600$ Building $ $113,500$

Merchandise inventory $391,400$ Land $77,500$

Equipment $64,500$

All liabilities are properly recorded.

Prepare the general journal entries to record revaluation of the assets.

Prepare the general journal entry $($or entries$)$ to record Vickie Neal$$s investment of $$100,000,$ assuming that she is to receive capital equal to the amount invested.

Prepare the general journal entry $($or entries$)$ to record Vickie Neal$$s investment of $$100,000,$ assuming that she is to receive one$-$fifth of the capital of the partnership.

Prepare the general journal entry $($or entries$)$ to record Vickie Neal$$s investment of $$100,000,$ assuming that she is to receive one$-$third of the capital of the partnership.

Assume that after the revaluation had been recorded, the existing partners and Vickie Neal decided that their previous agreement should be canceled and that Vickie Neal should not become a partner. Instead, the partners agreed that Hazel Adams would withdraw from the partnership and be paid cash by the partnership.

Prepare the general journal entry to record the payment to Hazel Adams if she is paid an amount equal to her capital account balance after the revaluation.

Prepare the general journal entry to record the payment to Hazel Adams if she is paid an amount equal to $$9,900$ less than her capital account balance after revaluation.

Prepare the general journal entry to record the payment to Hazel Adams if she is paid an amount equal to $$7,500$ more than her capital account balance after revaluation.

Analyze:

Assume that the assets have been revalued and that Vickie Neal has invested $$100,000$ in the partnership receiving one$-$fifth of the capital in the partnership. What is the balance of Isiah Adams$$s capital account at January $1,20$X$2?$