Sadhil Rao and Lauren sails have operated a successful firm for many years sharing net income and net losses equally. Paige Hancock is to be admitted to the partnership on May 1st of the current year, in accordance with the following agreement.
Chapter 12 PR 12-4B Accountings for partnerships and limited liability companies
Sadhil Rao and Lauren sails have operated a successful firm for many years sharing net income and net losses equally. Paige Hancock is to be admitted to the partnership on May 1st of the current year, in accordance with the following agreement.
a. Assets and liabilities of the old partnership are to be valued at their book values as of april 30 expect for the following things.
Instructions
1. Journalize the entries as of April 30 to record the revaluations, using a temporary accounts entitled Asset Revaluations. The balance in the accumulated depreciation account is to be eliminated.
2. Journalize the additional entries to record the remaining transactions relation to the formation of the new partnership. Assume that all transactions occur on May 1.
