could you write down the answer? ### Partnership Agreement and Trial Balance Overview**Introduction**Musa Moshref and Shaniqua Hollins have run a successful firm for several years, sharing net income and net losses equally. Recently, Taylor Anderson is scheduled to be admitted into the partnership on July 1 of the current year. The admission is structured according to the following terms:**Agreement Details**1. **Valuation of Assets and Liabilities:** - The old partnership's assets and liabilities are to be valued at their book values as of June 30, with the following exceptions: - **Accounts Receivable:** Amounting to $2,500 are to be written off. The allowance for doubtful accounts needs to be increased to 5% of the remaining accounts. - **Merchandise Inventory:** To be valued at $76,600. - **Equipment:** To be valued at $155,700.2. **Ownership Interest:** - Anderson will purchase $70,000 of the ownership interest from Hollins for $75,000 cash. - Anderson will also contribute an additional $45,000 cash to the partnership, making his total ownership equity $115,000.**Post-Closing Trial Balance:**The post-closing trial balance of Moshref and Hollins as of June 30 is as follows:(Note: Detailed trial balance amounts are usually provided here; however, they are not included within the given text.)**Explanation of Components:**- **Accounts Receivable Adjustments:** When accounts receivable are written off and allowances for doubtful accounts are adjusted, it reflects a more accurate representation of collectible amounts. - **Merchandise Inventory and Equipment Valuation:** Asset valuations provide a precise assessment of the current value of inventory and equipment, aiding in fair financial representation. - **Ownership Transactions:** Anderson's purchase and additional cash contribution establish a clear understanding of financial stakes and equity distribution within the new partnership.This transaction and subsequent trial balance modifications ensure the partnership's financial statements accurately reflect the new structure and agreed-upon values. ## Account Balances and Adjustments### Balances (Before Adjustment)- **Cash**: $8,000- **Accounts Receivable**: $42,500- **Allowance for Doubtful Accounts**: $1,600- **Merchandise Inventory**: $72,000- **Prepaid Insurance**: $3,000- **Equipment**: $180,500- **Accumulated Depreciation—Equipment**: $43,100- **Accounts Payable**: $21,300- **Notes Payable (current)**: $35,000- **Musa Moshref, Capital**: $120,000- **Shaniqua Hollins, Capital**: $85,000 ### Post-Adjustment Totals- **Adjusted Capital Balances**: $306,000 for both Musa Moshref and Shaniqua Hollins### Instructions:1. **Journalizing Revaluations (As of June 30)**: - Record entries to reflect the revaluations using a temporary account named **Asset Revaluations**. - **Debits** to this account represent **losses** from revaluation. - **Credits** to this account represent **gains** from revaluation. - Ensure the balance in the **Accumulated Depreciation** account is eliminated. - Post-revaluation, close the balance of the **Asset Revaluations** account into the capital accounts of **Musa Moshref** and **Shaniqua Hollins**.2. **Journalizing Anderson’s Entry into Partnership (As of July 1, 20Y7)**: - Record the necessary entries to account for Anderson's entry into the partnership.3. **Presenting a Balance Sheet (As of July 1, 20Y7)**: - Prepare a balance sheet reflecting the financial position of the new partnership.### Diagram Explanation- This section lacks diagram or graphical data. Instead, it contains a list of balances and related instructions to adjust these balances in the context of accounting revaluations and partnership formation.### Account Information- **Current Assets** include Cash, Accounts Receivable, Allowance for Doubtful Accounts, Merchandise Inventory, and Prepaid Insurance.- **Non-Current Assets** encompass Equipment amended by Accumulated Depreciation.- **Liabilities** are represented by Accounts

Journal entries records the transaction in such a way that there are2 effects in the financial…

Musa Moshref and Shaniqua Hollins have operated a successful firm for many years, sharing net income and net losses equally. Taylor Anderson is to be admitted to the partnership on July 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 June 30, except for the following: • Accounts receivable amounting to $2,500 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 $76,600. Equipment is to be valued at $155,700. b. Anderson is to purchase $70,000 of the ownership interest of Hollins for $75,000 cash and to contribute another $45,000 cash to the partnership for a total ownership equity of $115,000. The post-closing trial balance of Moshref and Hollins as of June 30 is as follows: