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I need this problem solved from accounting using excel for success 2nd edition book, problem PR 12-4B Admitting new partner. Anthony Simpson and Shawna Ryder have operated a successful firm for many years, sharing net income and net losses equally. Blaine Evans is to be admitted to the partnership on June 1 of the current year, in accordance with the following agreement: a.) Assets and liabilities of the old partnership are to be valued at their book values as of May 31, except for the following:

Accounts receivable amounting to $3,400 are to be written off, and the allowance for doubtful accounts is to be increased to 5% of the remaining accounts.

Merchandise inventory is to be valued at $64,300.

Equipment is to be valued at $88,000.

b). Evans is to purchased $32,000 of the ownership interest of Ryder for $37,500 cash and to contribute $40.000 cash to the partnership for a total ownership equity of $72,000. The post-closing trial balance of Simpson and Ryder as of May 31 follows.

Simpson and Ryder post-closing total balance May 2012

Debt Balances credit balances

Cash 14,400

Accounts receivable 21,400

Allowance for Doubtful Accounts 500

Merchandise Inventory 58,600

Prepaid insurance 3,500

Equipment 97,000

Accumulated Depreciation-Equipment 25,700

Accounts Payable 14,700

Notes Payable 12,000

Anthony Simpson, Capital 80,000

Shawna Ryder, Capital 62,000

___________________________

194.900 194,900

Instructions

1) Journalize the entries as of May 31 to record the revaluation, using a temporary account entitled Asset Revaluations. The balance in the accumulated depreciation account to be eliminated. After journalizing the revaluations, close the balance of the asset revaluations account to the capital accounts of Anthony Simpson and Shawna Ryder.. 2) Journalize the additional entries to record Evans ' entrance to the partnership on May 31, 2012. 3) Present a balance sheet for the new partnership as of June 1, 2012.

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