S. Stephens and J. Perez are partners in Space Designs. Stephens and Perez share income equally. D. Fredricks will be admitted to the partnership. Prior to the admission, equipment was revalued dawnward by $8,000. The capital balances of each partners are $100,000 and $139,000, respectively, prior to the revaluation

Requirement

(1) Provide the journal entry for the asset revaluation. * (2) Provide the journal entry for Fredn‘cks’admission under the following independent situations: " a. Fredricks purchased a 20% interest for $50,000. b. Fredricks purchased a 30% interest for $125,000. ‘Refer to the Chart of Accounts for exact wording of account titles.

Answer rating: 100% (QA)

1 S Stephens Capital 4000 J Perez Capital 4000 Equipment 8000 To record asset Revaluation 2a Cash 50... View the full answer