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L. Bowers and V. Lipscomb are partners in Elegant Event Consultants. Bowers and Lipscomb share income equally. M. Ortiz will be admitted to thepartnership. Prior to the admission, equipment was revalued downward by $7,200. The capital balances of each partner are $86,700 and $40,100, 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 Ortiz's 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 $19,200.
2. Ortiz purchased a 30% interest for $65,200.
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