Reference no: EM132877796

Question - Nicole admits Arphee as partner in her business. Accounts in the ledger of Nicole on November 30, 2020, just before the admission of Arphee, show the following balances: Cash 32,000 Accounts receivable 284,000 Merchandise inventory 400,000 Accounts Payable 160,000 Nicole, Capital 556,000 It is agreed that for purposes of establishing Nicole's interest, the following adjustments shall be made:

An allowance for doubtful accounts of 5% of accounts receivable is to be established.

The merchandise inventory is to be valued at 460,000.

Prepaid salary expense of 12,000 and accrued rent expense of 16,000 are to be recognized.

Arphee is to invest sufficient cash equivalent to 1/2 of interest of Nicole.

Required - What is the net debit/credit adjustment adjusted capital before the admission of Arpheefor Nicole? What should be the amount of cash investment by Arphee? What is the total assets of the partnership after the formation? What is the total assets of the partnership after the formation?