Question

Craig Roberts purchased one-half of Ennis Leighton’s interest in the Vale and Leighton partnership for $34,000....

Craig Roberts purchased one-half of Ennis Leighton’s interest in the Vale and Leighton partnership for $34,000. Prior to the investment, land was revalued to a market value of $130,000 from a book value of $80,000. Tony Vale and Ennis Leighton share net income equally. Leighton had a capital balance of $36,000 prior to these transactions.

Required:
A. On December 31, provide the journal entry for the revaluation of land.*
B. On December 31, provide the journal entry to admit Roberts.*
*Refer to the Chart of Accounts for exact wording of account titles.
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