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pen Assignment CALCURLATOR Bill and Jane share profits and losses in a 70: on June 30, 2014 just before the admission of Mike are as follows: 30 ratio. Mike is to be admitted into a partnersh ip upon the investment of $14,000 for a one-third capital interest, Account balances for Bill and Jane Cash Accounts Receivable Notes Receivable Merchandise Inventory Prepaid Insurance Accounts Payable Bl, Capital Jane, Capital $6,000 9,000 2,000 12,000 500 $9,500 12,000 8,000 $29,500 $29.500 It is agreed that for purposes of establishing the interests of the former partners, the following adjustments shall be made: I. An allowance for doubtful accounts of 2% of the accounts receivable is to be established. 2. The merchandise inventory is to be valued at $10,000. 3. Accrued expenses of $600 are to be recognized. 4. Prepaid insurance is to be valued at $300 5. The goodwill method is to be used to record the admission of Miks. t establishing the interests of Bill and Jane and to record the investmente by Mike. (Credit account titles are automatically indented Prepare the entries to adjust the account balances in when amount is entered. Do not indent manually, Ir no entry is required, select "No Entry" for the account titles and enter O for the amounts) Type here to search

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