Glenn Powell is to retire from the partnership of Powell and Associates as of March 31, the

Question:

Glenn Powell is to retire from the of Powell and Associates as of March 31, the end of the current fiscal year. After closing the accounts, the capital balances of the partners are as follows: Glenn Powell, $260,000; Tammie Sawyer, $125,000; and Joe Patel, $140,000.
They have shared net income and net losses in the ratio of 3:2:2. The partners agree that the merchandise inventory should be increased by $30,000, and the allowance for doubtful accounts should be increased by $6,200. Powell agrees to accept a note for $165,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash.
Sawyer and Patel are to share equally in the net income or net loss of the new the entries to record
(a) The adjustment of the assets to bring them into agreement with current market prices
(b) The withdrawal of Powell from the Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...