Bookmarks People Tab Window Help 0 3.40 GB D 43% Tue 11:16 PM CHAPTEROX My Home CengageNO X C Recording Welcome BIO211 ON2 Assignment/takeAssignment Main.do?invoker &takeAssignmentSessionLocator &inprogress false eBook Show Me How Calculator Withdrawal of Partner Lane Stevens is to retire from the partnership of Stevens 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: Lane Stevens, $150,000; Cherrie Ford, $70,000; and LaMarcus Rollins, $60,000. 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 $22,300 and the allowance for doubtful accounts should be increased by $1,300. Stevens agrees to accept a note for $100,000 in partial settlement of his ownership equity. The remainder of his claim is to be paid in cash. Ford and Rollins are to share equally in the net income or net loss of the new partnership a. Journalize the entry to record the adjustment of the assets to bring them into agreement with current market prices. For a compound transaction, if an amount box does not require an entry, leave it blank. Merchandise Inventory Allowance for Doubtful Accounts Lane Stevens, Capital 11111 Cherrie Ford, Capital LaMarcus Rolins, Capital eBook Show Me How Calculator Feedback Check My Work a. Adjust the inventory account and the allowance account, and adjust each partner's capital account for their income-sharing ratio b. Journalize the entry to record the withdrawal of Stevens from the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank. Lane Stevens, Capital Cash Notes Payable Feedback Check My Work b. Close the partner's capital account as adjusted in partaand record the cash payment Feedback Check My Work Partially correct Previous Next