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Admitting New Partner Brian Caldwell and Adriana Estrada have operated a successful firm for many years, sharing net income and net losses equally. Kris Mays is to be admitted to the partnership on September 1 of the current year, in accordance with the following agreement: a. Assets and liabilities of the old partnership are to be valued at their book values as of August 31, except for the following: Accounts receivable amounting to $2,400 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 $62,200. Equipment is to be valued at $135,400. b. Mays is to purchase $59,000 of the ownership interest of Estrada for $64,000 cash and to contribute $32,000 cash to the partnership for a total ownership equity of $91,000. The post-closing trial balance of Caldwell and Estrada as of August 31 follows: Caldwell and Estrada Post-Closing Trial Balance August 31, 2019 Debit Credit Balances Balances Cash 6,200 Accounts Receivable 37,800 Allowance for Doubtful Accounts 1,400 Merchandise Inventory 58,100 Prepaid Insurance 2,100 Equipment 157,000 Accumulated Depreciation Equipment 48,700 Accounts Payable 7,400 Notes Payable (current) 38,700 Brian Caldwell, Capital 88,000 Adriana Estrada, Capital 77,000 261,200 261,200 Required: 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. After journalizing the revaluations, close the balance of the asset revaluations account to the capital accounts of Brian Caldwell and Adriana Estrada. If an amount box does not require an entry, leave it blank. Aug. 31-Accounts Receivable Aug. 31-Merchandise Inventory Aug. 31-Equipment III II III III III II III III 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 require an entry, leave it blank. Sept. 1-Purchase capital II II II II 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: Total assets Liabilities Current liabilities: Total liabilities Partners' Equity. $ Total partners' equity Total liabilities and partners' equity