Devin Morris invested $28,000 in the Townley and Starr partnership for ownership equity of $28,000. Prior to

Question:

Devin Morris invested $28,000 in the Townley and Starr for ownership equity of $28,000. Prior to the investment, equipment was revalued to a market value of $100,000 from a book value of $85,000. Stuart Townley and Ayesha Starr share net income in a 2:1 ratio.
a. Provide the journal entry for the revaluation of equipment.
b. Provide the journal entry to admit Morris.

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...