Instructions 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 $96,000 and $40,000, respectively, prior to the revaluation Required A On December 31, provide the journal entry for the asset revaluation Refer to the Chart of Accounts for exact wording of account titles B On December 31, provide the journal entry for Ortizs admission under the following independent situations (refer to the Chart of Accounts for exact wording of account titles) 1 Ortiz purchased a 20 interest for $20,000 2 Ortiz purchased a 30 interest for $60,000 CHART OF ACCOUNTS Elegant Event Consultants General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Office Supplies 118 Store Supplies 119 Prepaid Insurance 120 Land 123 Equipment 124 Accumulated Depreciation Equipment 129 Asset Revaluations 133 Patent LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 L Bowers, Capital 311 L Bowers, Drawing 312 V Lipscomb, Capital 313 V Lipscomb, Drawing 314 M Ortiz, Capital 315 M Ortiz, Drawing 330 Income Summary Refer to the Chart of Accounts for exact wording of account titles Scroll down to access pages 10 and 11 of the journal A On December 31, provide the journal entry for the asset revaluation JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 B On December 31, provide the journal entry for Ortizs admission under the following independent situations 1 Ortiz purchased a 20 interest for $20,000 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4 Explanation 2 Ortiz purchased a 30 interest for $60,000 JOURNAL DATE DESCRIPTION POST REF DEBIT CREDIT 1 2 3 4

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Instructions - Admitting new partner with bonus L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M.

Instructions - 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 $96,000 and $40,000, respectively, prior to the revaluation.

Required:

On December 31, provide the journal entry for the asset revaluation. Refer to the Chart of Accounts for exact wording of account titles.

On December 31, provide the journal entry for Ortizs admission under the following independent situations (refer to the Chart of Accounts for exact wording of account titles):

1.	Ortiz purchased a 20% interest for $20,000.
2.	Ortiz purchased a 30% interest for $60,000.

CHART OF ACCOUNTS

Elegant Event Consultants

General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
113	Allowance for Doubtful Accounts
114	Interest Receivable
115	Notes Receivable
116	Inventory
117	Office Supplies
118	Store Supplies
119	Prepaid Insurance
120	Land
123	Equipment
124	Accumulated Depreciation-Equipment
129	Asset Revaluations
133	Patent

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	L. Bowers, Capital
311	L. Bowers, Drawing
312	V. Lipscomb, Capital
313	V. Lipscomb, Drawing
314	M. Ortiz, Capital
315	M. Ortiz, Drawing
330	Income Summary