Watson purchased one-half of Dalton's interest in the Patton and Dalton Partnership for $45,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $93,000. Patton and Dalton share net income equally. Dalton had a capital balance of $35,000 prior to these transactions.Required
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Watson.

Question

Watson purchased one-half of Dalton's interest in the Patton and Dalton Partnership for $45,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $93,000. Patton and Dalton share net income equally. Dalton had a capital balance of $35,000 prior to these transactions.​Required
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Watson.

Quizplus · Accepted Answer

The Answer of Watson purchased one-half of Dalton's interest in the Patton and Dalton Partnership for $45,000. Prior to the investment, land was revalued to a market value of $135,000 from a book value of $93,000. Patton and Dalton share net income equally. Dalton had a capital balance of $35,000 prior to these transactions.​Required
(a) Provide the journal entry for the revaluation of land.
(b) Provide the journal entry to admit Watson.

Watson Purchased One-Half of Dalton's Interest in the Patton and Dalton