Admitting New Partner Who Contributes Assets After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $54,900 and $86,500, respectively. Lewan Gorman is to be admitted to the partnership, contributing $43,300 cash to the partnership, for which he is to receive an ownership equity of $50,SOD. All partners share caually in income a. Joumalize the entry to record the admission of German, who is to receive a bonus of $7,200. If an amount box does not require an entry, leave it blank Cash 64,000 X Grayson Jackson, Capital 9,500 Harry Barge, Capital X Lewan Gorman, Capital 83,000 X Foodhack Check My Work a. Record the cash contribution and increase the new pariner's equity account for the ownership cquity received. Reduce the old partners' cquity accounts for the transfer of ownership. b. What are the capital balances of each partner after the admission of the new partner? Partner Balance Grayson Jackson $ 86,500 X $ 153,500 Harry Barge Lewan Gormen 83,000 X Feedback Check My Work b. Old partner capital amounts must be adjusted for the bonus. New partner received anership equity amour. C. Why are tangible assets adjusted to current market prices prior to admitting a new partner? Tangible assets should be adjusted to current market prices so that the new partner always shares in x any gains ar losses from changes in market prices prior to being admitted. For example, if the market price of land doubled prior to admitting new partners, the existing partners should realize the increase in the value of the land in their capital accounts prior to the rew partners' admission. Otherwise, none of the partners x would share in the increase in market value of the land. Foodha