Gleason invested $90,000 in the James and Kirk Partnership for ownership equity of $90,000. Prior to the investment, land was revalued to a market value of $425,000 from a book value of $200,000. James and Kirk share net income in a 1:2 ratio.
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Gleason.

Question

Gleason invested $90,000 in the James and Kirk Partnership for ownership equity of $90,000. Prior to the investment, land was revalued to a market value of $425,000 from a book value of $200,000. James and Kirk share net income in a 1:2 ratio.​
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Gleason.

Quizplus · Accepted Answer

The Answer of Gleason invested $90,000 in the James and Kirk Partnership for ownership equity of $90,000. Prior to the investment, land was revalued to a market value of $425,000 from a book value of $200,000. James and Kirk share net income in a 1:2 ratio.​
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Gleason.

Gleason Invested $90,000 in the James and Kirk Partnership for Ownership