Question 1. Josh Beach contributed land, inventory, and $24,000 cash to a partnership. The land had a book value of $65,000 and a market value of $114, 000. The inventory had a book value of $60,000 and a market value of $56,000. The partnership also assumed a $50,000 note payable owed by Beach that was used originally to purchase the land. Provide the Journal entry for Beach's contribution to the partnership.
Question 2. 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.
Question 3. Jen Hall contributed a patent, accounts receivable, and $22,000 cash to a partnership. The patent had a book value of $56,000. However, the technology covered by the patent appeared to have significant market potential. Thus, the patent was appraised at $150,000. The accounts receivable control account was $32,000, with an allowance for doubtful accounts of $2,000. The partnership also assumed a $12,000 account payable from Hall. Provide the journal entry for Hall's contribution to the partnership.
Question 4. Jamarcus Webster purchased one-half of Drew Akin's interest in the Perry and Akins partnership for $25,000. Prior to the investment, land was revalued to a market value of $100,000 from a book value of $84,000. Weston Perry and Drew Akins share net income equally. Akins had a capital balance of $25,000 prior to these transactions.
a. Provide the journal entry for the revaluation of land.
b. Provide the journal entry to admit Webster.