Noni Fidler is to retire from the partnership of Fidler and Associates as at December 31, 2015. After closing the accounts, the capital balances of the partners are as follows: Noni Fidler, $245,000; Margot Hess, $125,000; and Susan Culver, $140,000. They have shared net income and net losses of the partnership in a ratio of 3:2:2. The partners agree that the inventory should be increased by $24,000, and the allowance for doubtful accounts should be increased by $5,800. Fidler agrees to accept a note for $200,000 in partial settlement of her ownership equity. The remainder of her claim is to be paid in cash.

Instructions

1. Provide the journal entry for the asset revaluation.

2. Provide the journal entry under the following independent situations:

a. Fidler received cash of $52,800.

b. Fidler received cash of $45,000.

c. Fidler received cash of $56,000.

3. Provide the journal entries to close the income summary and the withdrawals accounts, on December 31, 2016, assuming income of $320,000 and monthly with- drawals of $10,000 by Hess and $8,000 by Culver