Revaluing and Contributing Assets to a Partnership

Demarco Lee invested $47,000 in the Camden & Sayler partnership for ownership equity of $47,000. Prior to the investment, equipment was revalued to a market value of $299,000 from a book value of $239,000. Kevin Camden and Chloe Sayler share net income in a 1:2 ratio.

Required:

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

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

b. Provide the journal entry to admit Lee.