The balance sheet of Adams Pharmacy after the revenue, expense, and partners drawing accounts have been closed on December 31, 20X1, follows ADAMS PHARMACY Balance Sheet December 31, 20X1 Assets Cash $82,900 Accounts Receivable 16,500 Merchandise Inventory 427,500 Equipment $169,000 Accumulated DepreciationEquipment 98,500 70,500 Building 410,000 Accumulated DepreciationBuilding 325,000 85,000 Land 45,000 Total Assets $727,400 Liabilities and Partners' Equity Liabilities Accounts Payable $409,700 Taxes Payable 22,700 Total Liabilities 432,400 Partners Equity Larry Adams, Capital $165,000 Hazel Adams, Capital 65,000 Isiah Adams, Capital 65,000 Total Partners Equity 295,000 Total Liabilities and Partners' Equity $727,400 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 $ 15,200 Building $ 131,500 Merchandise inventory 403,400 Land 95,500 Equipment 70,500 All liabilities are properly recorded Required Prepare the general journal entries to record revaluation of the assets Prepare the general journal entry (or entries) to record Vickie Neals investment of $120,000, assuming that she is to receive capital equal to the amount invested Prepare the general journal entry (or entries) to record Vickie Neals investment of $120,000, assuming that she is to receive one fifth of the capital of the partnership Prepare the general journal entry (or entries) to record Vickie Neals investment of $120,000, 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 $13,500 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 $11,100 more than her capital account balance after revaluation Analyze Assume that the assets have been revalued and that Vickie Neal has invested $120,000 in the partnership receiving one fifth of the capital in the partnership What is the balance of Isiah Adamss capital account at January 1, 20X2

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The balance sheet of Adams Pharmacy after the revenue, expense, and partners drawing accounts have been closed on December 31, 20X1, follows: ADAMS PHARMACY Balance

The balance sheet of Adams Pharmacy after the revenue, expense, and partners drawing accounts have been closed on December 31, 20X1, follows:

ADAMS PHARMACY
Balance Sheet
December 31, 20X1
Assets
Cash		$82,900
Accounts Receivable		16,500
Merchandise Inventory		427,500
Equipment	$169,000
Accumulated DepreciationEquipment	98,500	70,500
Building	410,000
Accumulated DepreciationBuilding	325,000	85,000
Land		45,000
Total Assets		$727,400
Liabilities and Partners' Equity
Liabilities
Accounts Payable		$409,700
Taxes Payable		22,700
Total Liabilities		432,400
Partners Equity
Larry Adams, Capital	$165,000
Hazel Adams, Capital	65,000
Isiah Adams, Capital	65,000
Total Partners Equity		295,000
Total Liabilities and Partners' Equity		$727,400

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	$	15,200	Building	$	131,500
Merchandise inventory		403,400	Land		95,500
Equipment		70,500

All liabilities are properly recorded. Required:

Prepare the general journal entries to record revaluation of the assets.
Prepare the general journal entry (or entries) to record Vickie Neals investment of $120,000, assuming that she is to receive capital equal to the amount invested.
Prepare the general journal entry (or entries) to record Vickie Neals investment of $120,000, assuming that she is to receive one-fifth of the capital of the partnership.
Prepare the general journal entry (or entries) to record Vickie Neals investment of $120,000, 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 $13,500 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 $11,100 more than her capital account balance after revaluation.

Analyze: Assume that the assets have been revalued and that Vickie Neal has invested $120,000 in the partnership receiving one-fifth of the capital in the partnership. What is the balance of Isiah Adamss capital account at January 1, 20X2?