12.11

Admitting New Partner With Bonus

Cody Jenkins and Jun Ito formed a partnership to provide landscaping services. Jenkins and Ito shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Jun Ito have balances of $72,000 and $38,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Ito deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $30,000.

Hint(s)

a. Determine the recipient and amount of the partner bonus. $ SelectCody JenkinsCody Jenkins and Jun Ito, bothJun ItoValeria Solano

Hint(s)

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b. Provide the journal entry to admit Solano into the partnership. For a compound transaction, if an amount box does not require an entry, leave it blank.