Bow and Mon are partners in a retail business and divide profits 60 percent to Bow and

Question:

Bow and Mon are partners in a retail business and divide profits 60 percent to Bow and 40 percent to Mon. Their capital balances at December 31, 2011, are as follows:
Bow capital .... $90,000
Mon capital ...... 90,000
Total capital .... $180,000
Partnership assets and liabilities have book values equal to fair values. The partners agree to admit Joh into the Joh purchases a one-third interest in capital and profits directly from Bow and Mon (one-third of each of their capital accounts) for $75,000.
REQUIRED: Prepare journal entries for the admission of Joh into the assuming that assets are revalued.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...