Admitting New Partner With BonusL. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are$93,000 and $130,500, respectively, prior to the revaluation.a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank.L. Bowers, Cap ✔ 4,000 ✓V. Lipscomb, Cal ✓4,000 ✓EquipmenFeedback►Check My Workb. Provide the journal entry for Ortiz's admission under the following independent situations:1. Ortiz purchased a 20% interest for $47,000. If an amount box does not require an entry, leave it blank.Cash ✓47,000 ✓L. Bowers, Cap ✓V. Lipscomb, Cal ✔M. Ortiz, Capi✓ ✓FeedbackCheck My Work8,000✔✓52,500✔2. Ortiz purchased a 30% interest for $118,000. If an amount box does not require an entry, leave it blank.Cash ✔118,000 ✓L. Bowers, Cap ✔V. Lipscomb, CalM. Ortiz, Capi

Any amount paid by the new partner in excess of the capital received is treated as bonus paid to…

Admitting New Partner With Bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $93,000 and $130,500, respectively, prior to the revaluation. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. L. Bowers, Cap 4,000✔ S V. Lipscomb, Cal✓ 4,000 ✓ Equipmen ✓ Feedback Check My Work b. Provide the journal entry for Ortiz's admission under the following independent situations: 1. Ortiz purchased a 20% interest for $47,000. If an amount box does not require an entry, leave it blank. 47,000✔ Cash ✔ L. Bowers, Cap-✔ V. Lipscomb, Ca M. Ortiz, Capi✓ 8,000 ✓ Feedback Check My Work $2,500✔ 2. Ortiz purchased a 30% interest for $118,000. If an amount box does not require an entry, leave it blank. Cash ✔ 118,000✔ L. Bowers, Cap. ✔ V. Lipscomb, Cal M. Ortiz, Capi✓

Admitting New Partner With Bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $93,000 and $130,500, respectively, prior to the revaluation. a. Provide the journal entry for the asset revaluation. If an amount box does not require an entry, leave it blank. L. Bowers, Cap 4,000✔ S V. Lipscomb, Cal✓ 4,000 ✓ Equipmen ✓ Feedback Check My Work b. Provide the journal entry for Ortiz's admission under the following independent situations: 1. Ortiz purchased a 20% interest for $47,000. If an amount box does not require an entry, leave it blank. 47,000✔ Cash ✔ L. Bowers, Cap-✔ V. Lipscomb, Ca M. Ortiz, Capi✓ 8,000 ✓ Feedback Check My Work $2,500✔ 2. Ortiz purchased a 30% interest for $118,000. If an amount box does not require an entry, leave it blank. Cash ✔ 118,000✔ L. Bowers, Cap. ✔ V. Lipscomb, Cal M. Ortiz, Capi✓

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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