Gavin invested $40,000 in the Jason and Kelly Partnership for ownership equity of $40,000. Prior to the investment, land was revalued to a market value of $363,000 from a book value of $174,000. Jason and Kelly share net income in a 1:2 ratio. a. Provide the journal entry for the revaluation of land. If an amount box does not require an entry, leave it blank.

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Vivian

Business

4 November, 17:25

Gavin invested $40,000 in the Jason and Kelly Partnership for ownership equity of $40,000. Prior to the investment, land was revalued to a market value of $363,000 from a book value of $174,000. Jason and Kelly share net income in a 1:2 ratio. a. Provide the journal entry for the revaluation of land. If an amount box does not require an entry, leave it blank.

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Xander Odom · Answer 1

A.

Dr Land $189,000

Cr Jason, Capital $63,000

Cr Kelly, Capital $126,000

B.

Dr Cash $40,000

Cr Gavin, Capital $40,000

Explanation:

A.

Dr Land ($363,000-$174,000) $189,000

Jason, Capital (1/3*189,000) $63,000

Kelly, Capital (1/2*189,000) $126,000

B.

Dr Cash $40,000

Cr Gavin, Capital $40,000