The balance sheet of Adams Pharmacy after the revenue, expense, and partners drawing accounts have been closed on December 31, 2016, follows:

ADAMS PHARMACY
Balance Sheet
December 31, 2016
Assets
Cash			83,300
Accounts Receivable			16,900
Merchandise Inventory			433,500
Equipment	173,000
Accumulated DepreciationEquipment	100,500		72,500
Building	418,000
Accumulated DepreciationBuilding	329,000		89,000
Land			49,000
Total Assets			744,200
Liabilities and Partners' Equity
Liabilities
Accounts Payable			414,100
Taxes Payable			23,100
Total Liabilities			437,200
Partners Equity
Larry Adams, Capital	169,000
Hazel Adams, Capital	69,000
Isiah Adams, Capital	69,000
Total Partners Equity			307,000
Total Liabilities and Partners' Equity			744,200

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	$	14,800		Building		$	137,500
Merchandise inventory		407,400		Land			101,500
Equipment		72,500

All liabilities are properly recorded.

Prepare the general journal entries for the followings:
1.	Revaluation of the assets on December 31, 2016.
	2. Vickie Neals investment of $120,000, assuming that she is to receive capital equal to the amount invested on December 31, 2016.
	3. Vickie Neals investment of $120,000, assuming that she is to receive one-fifth of the capital of the partnership on December 31, 2016.
	4. Vickie Neals investment of $120,000, assuming that she is to receive one-third of the capital of the partnership on December 31, 2016.

5.

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 on December 31, 2016.

a.	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.
b.	Prepare the general journal entry to record the payment to Hazel Adams if she is paid an amount equal to $14,700 less than her capital account balance after revaluation.
c.	Prepare the general journal entry to record the payment to Hazel Adams if she is paid an amount equal to $12,300 more than her capital account balance after revaluation.
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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, 2017?

Journal Entry Worksheet Record the revaluation of assets and allocation of gain to partners. Transactions General Journal Debit Credit 01 *Enter debits before credits done clear entry record entry