Revaluing and Contributing Assets to a Partnership

Blake Nelson invested $67,000 in the Lawrence & Kerry partnership for ownership equity of $67,000. Prior to the investment, land was revalued to a market value of $416,000 from a book value of $320,000. Lynne Lawrence and Tim Kerry share net income in a 1:2 ratio.

a. Provide the journal entry for the revaluation of land.

For a compound transaction, if an amount box does not require an entry, leave it blank.

b. Provide the journal entry to admit Nelson.