Problem:
Barker invested $128,000 in the Granger and Monroe partnership for ownership equity of $128,000. Prior to the investment, equipment was revalued to a market value of $90,000 from a book value of $66,000. Granger and Monroe share net income in a 2:1 ratio.
Required:
Question 1: Provide the journal entry for the revaluation of equipment.
Question 2: Provide the journal entry to admit Barker
Note: Please show how to work it out.