Brandon Tarr invested $64,000 in the Garmon and Miller partnership for ownership equity of $64,000. Prior to the investment, equipment was revalued to a market value of $45,000 from a book value of $33,000. Jordon Garmon and Kali Miller 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 Tarr Revaluing and contributing assets to a partnership
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Brandon Tarr invested $64,000 in the Garmon and Miller partnership for ownership equity of $64,000. Prior to the investment, equipment was revalued to a market value of $45,000 from a book value of $33,000. Jordon Garmon and Kali Miller share net income in a 2:1 ratio.
a. Provide the
b. Provide the journal entry to admit Tarr
Revaluing and contributing assets to a partnership
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