Question

Revaluing and Contributing Assets to a Partnership Demarco Lee invested $53,000 in the Camden & Sayler...

Revaluing and Contributing Assets to a Partnership Demarco Lee invested $53,000 in the Camden & Sayler partnership for ownership equity of $53,000. Prior to the investment, equipment was revalued to a market value of $366,000 from a book value of $294,000. Kevin Camden and Chloe Sayler share net income in a 1:3 ratio. Required: a. Provide the journal entry for the revaluation of equipment. For a compound transaction, if an amount box does not require an entry, leave it blank. Cash 53,000 53,000 Equipment 72,000 Chloe Sayler, Capital Feedback a. The accounts should be adjusted for the equipment revaluation. Any net adjustment (increase or decrease) in asset values is divided among the capital accounts of the existing partners, similar to the division of income. b. Provide the journal entry to admit Lee. Kevin Camden, Capital 24,000 Demarco Lee, Capital 72,000

Revaluing and Contributing Assets to a Partnership

Demarco Lee invested $53,000 in the Camden & Sayler partnership for ownership equity of $53,000. Prior to the investment, equipment was revalued to a market value of $366,000 from a book value of $294,000. Kevin Camden and Chloe Sayler share net income in a 1:3 ratio.

Required:

a. Provide the journal entry for the revaluation of equipment.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Cash
Equipment
Chloe Sayler, Capital

Feedback

a. The accounts should be adjusted for the equipment revaluation. Any net adjustment (increase or decrease) in asset values is divided among the capital accounts of the existing partners, similar to the division of income.

b. Provide the journal entry to admit Lee.

Kevin Camden, Capital
Demarco Lee, Capital
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