Response to the following problem:
Lon Augustine is retiring from the partnership of Augustine, Rye, and Bermuda on May 31. The partner capital balances are Augustine, $36,000; Rye, $51,000; and Bermuda, $22,000. The partners agree to have the partnership assets revalued to current market values. The independent appraiser reports that the book value of the inventory should be decreased by $12,000, and the book value of the land should be increased by $32,000. The partners agree to these revaluations. The profit-and-loss ratio has been 5:3:2 for Augustine, Rye, and Bermuda, respectively. In retiring from the firm, Augustine receives $30,000 cash and a $30,000 note from the partnership.
Required:
Journalize (a) the asset revaluations and (b) Augustine's withdrawal from the firm.