Revaluing and Contributing Assets to a Partnership Blake Nelson invested $67,000 in the Lawrence &...
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Accounting
Revaluing and Contributing Assets to a Partnership
Blake Nelson invested $67,000 in the Lawrence & Kerry partnership for ownership equity of $67,000. Prior to the investment, land was revalued to a market value of $416,000 from a book value of $320,000. Lynne Lawrence and Tim Kerry share net income in a 1:2 ratio.
a. Provide the journal entry for the revaluation of land.
For a compound transaction, if an amount box does not require an entry, leave it blank.
b. Provide the journal entry to admit Nelson.
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