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Lane Stevens is to retire from the partnership of Stevens and Associates as of March...

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Accounting

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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, $290,000; Cherrie Ford, $148,000; and LaMarcus Rollins, $165,000. They have shared net income and net losses in the ratic of 3:2:2. The partners agree that the merchandise inventory should be increased by $26,800, and the allowance for doubthul accounts should be increased by $6,500. Stevens agrees to accept a note for $240,000 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. Joumalize the entry to record the adjustment of the assets to bring them into agreement with current market prices. If an amount box does not require an entry, leave it blank. T Check wy wis a. Adust the invertory ocoount and the atowance acoount, and adjust oach partier's capital account for their income aharing rabo by multiplyg not inventory alocation and 2 time net inventory far bot Rochards' and Wiliams' allocaton

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