Derek and Hailey, Partners Sharing Net Income in the Ratio

Essay

Derek and Hailey, partners sharing net income in the ratio of 2:1, admit Ben to the partnership in accordance with the following agreement:?
(1)Merchandise inventory recorded in the partnership accounts at $62,500 is to be revalued at its current replacement price of $68,500.
(2)Ben invested $48,000 in cash for a 30% interest in the partnership, which has total net assets
(assets minus liabilities) of $130,000 that includes the inventory revaluation and the cash invested by Ben.
(3)The income-sharing ratio of Derek, Hailey, and Ben is to be 2:1:1.??

Required
(a)Journalize the entries to record the revaluation of merchandise inventory and the admission of Ben to the partnership.
(b)A few years later, the capital balances of Derek, Hailey, and Ben were $150,000, $90,000, and $55,000, respectively. At this time, Kacy is admitted to the partnership by the purchase of one-half of Derek's interest for $80,000. Journalize the entry to record the admission of Kacy to the partnership.