After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $101,000 and $152,000, respectively. Austin Neel is to be admitted to the partnership, contributing $68,000 cash to the partnership, for which he is to receive an ownership equity of $88,000. All partners share equally in income.

a. Journalize the entry to record the admission of Neel, who is to receive a bonus of $20,000. For a compound transaction, if an amount box does not require an entry, leave it blank.

	Brad Paulson, DrawingCashAustin Neel, CapitalAustin Neel, DrawingDrew Webster, Drawing	- Select -	- Select -
	Brad Paulson, CapitalBrad Paulson, DrawingAustin Neel, CapitalAustin Neel, DrawingDrew Webster, Drawing	- Select -	- Select -
	Brad Paulson, DrawingAustin Neel, CapitalAustin Neel, DrawingDrew Webster, CapitalDrew Webster, Drawing	- Select -	- Select -
	Brad Paulson, CapitalCashAustin Neel, CapitalAustin Neel, DrawingDrew Webster, Capital	- Select -	- Select -

b. What are the capital balances of each partner after the admission of the new partner?

Partner	Balance
Brad Paulson	$fill in the blank 0f267206607cfd4_1
Drew Webster	$fill in the blank 0f267206607cfd4_2
Austin Neel	$fill in the blank 0f267206607cfd4_3

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 partnercurrent partners

does not share in any gains or losses from changes in market prices

priorafter

to being admitted.