Amazon invested $128,000 in the Jungle and River partnership for ownership equity of $128,000. Prior to the investment, equipment was revalued to a market value of $90,000 from a book value of $72,000. Jungle and River share net income in a 2:1 ratio. Required: (a) Provide the journal entry for the revaluation of equipment. (b) Provide the journal entry to admit Amazon.
Amazon invested $128,000 in the Jungle and River partnership for ownership equity of $128,000. Prior to the investment, equipment was revalued to a market value of $90,000 from a book value of $72,000. Jungle and River share net income in a 2:1 ratio. Required: (a) Provide the journal entry for the revaluation of equipment. (b) Provide the journal entry to admit Amazon.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Amazon invested $128,000 in the Jungle and River partnership for ownership equity of $128,000. Prior to the investment, equipment was revalued to a market value of $90,000 from a book value of $72,000. Jungle and River share net income in a 2:1 ratio.
Required:
(a) Provide the
(b) Provide the journal entry to admit Amazon.
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