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S. Stephens adn J. Perez are partners in Space designs. Stephens and Perez share income equally. D Fredrick will be admitted to the partnership. Prior to teh admission, equipment was revalued downward by $18,000. The capital balances of each partner are $100,000 adn $139,000, respectively, prior to the revaluation.
Required:
(1) Provide the journal entry for the asset revaluation.
(2) Provide the journal entry for Fredrick’s' admission under the following independent situations:
a. Fredrick’s purchased a 25% interest of $75,000.
b. Fredrick’s purchased a 35% interest for $115,000.
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