Lane, Ramirez, and Valverde are partners. On July 30, 201X, the balance sheet was as follows:

The partners agree to share all losses and gains in a 2:2:1 ratio. Valverde is withdrawing from the partnership. From the following independent situations, journalize the withdrawal of Valverde:

Situation 1: Valverde sells his equity to Jimenez for $18,000. Partners agree to admission of Jimenez.

Situation 2: On withdrawal of Valverde, inventory is determined to be overvalued by $1,700. (Before withdrawal, assets are revalued to current fair market value.) Be sure to record the entry to revalue inventory as well as the withdrawal of Valverde.

Situation 3: Valverde is paid $3,900 out of the assets of the partnership. The partners do not want to change the recorded asset values.

Situation 4: Valverde is paid $8,900 out of the assets of the partnership. The partners do not want to change the recorded asset values.

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Cash $12,800 Lane, Capital $ 7,800 Merchandise Inventory 4,900 Ramirez, Capital 12,600 Other Assets 8,100 Valverde, Capital 5,400 Total Assets $25,800 Total Liab. & Equity $25,800