### Instructions for Accounting Exercise#### ScenarioGavin invested $42,000 in the Jason and Kelly Partnership for ownership equity of $42,000. Prior to the investment, land was revalued to a market value of $412,000 from a book value of $211,000. Jason and Kelly share net income in a 1:2 ratio.#### Requireda. Provide the journal entry for the revaluation of land.*b. Provide the journal entry to admit Gavin.**Refer to the Chart of Accounts for exact wording of account titles.#### Additional Information- Revaluation of land involves adjusting the book value of the land to reflect its current market value.- The admission of Gavin as a new partner requires proper journal entries to accurately record the investment and his equity in the partnership.By following these instructions and ensuring accurate journal entries, students will understand the proper accounting treatment for revaluation of assets and admission of a new partner in a partnership.

Admission of New Partner: In the absence of any other agreement, the only way for the business to…

Gavin invested $42,000 in the Jason and Kelly Partnership for ownership equity of $42,000. Prior to the investment, land was revalued to a market value of $412,000 from a book value of $211,000. Jason and Kelly share net income in a 1:2 ratio. Required: a. Provide the journal entry for the revaluation of land* b. Provide the journal entry to admit Gavin "Refer to the Chart of Accounts for exact wording of account titles.

Gavin invested $42,000 in the Jason and Kelly Partnership for ownership equity of $42,000. Prior to the investment, land was revalued to a market value of $412,000 from a book value of $211,000. Jason and Kelly share net income in a 1:2 ratio. Required: a. Provide the journal entry for the revaluation of land* b. Provide the journal entry to admit Gavin "Refer to the Chart of Accounts for exact wording of account titles.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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