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Question
Gavin invested $45,000 in the Jason and Kelly Partnership for ownership equity of $45,000. Prior to the investment, land was revalued to a market value of $320,000 from a book value of $200,000. Jason and Kelly shared net income in a 1:2 ratio.
a. Journalize the entry for the revaluation of land. (The partnership does not use the temporary asset revaluation account.)
b. Journalize the entry to admit Gavin.
Answer
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