Naseef Asad invested $75,000 in the Lionel and Morehouse partnership for ownership equity of $75,000. Prior to

Question:

Naseef Asad invested $75,000 in the Lionel and Morehouse partnership for ownership equity of $75,000. Prior to the investment, equipment was revalued to a market value of $57,000 from a book value of $33,000. Justin Lionel and Courtney Morehouse 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 Asad.

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...