S Stephens and J

Essay

S. Stephens and J. Perez are partners in Space Designs. Stephens and Perez share income equally. D. Fredericks will be admitted to the partnership. Prior to the admission, equipment was revalued downward by $8,000. The capital balances of each partner are $100,000 and $139,000, respectively, prior to the revaluation.Required
(1)Provide the journal entry for the asset revaluation.
(2)Provide the journal entry for Fredericks' admission under the following independent situations:
(a)Fredericks purchased a 20% interest for $50,000.
(b)Fredericks purchased a 30% interest for $125,000.​