After the tangible assets have been adjusted to current market prices, the capital accounts of Grayson Jackson and Harry Barge have balances of $45,110 and $57,280, respectively. Lewan Gorman is to be admitted to the partnership, contributing $27,600 cash to the partnership, for which he is to receive an ownership equity of $33,070. All partners share equally in income.

Required:

a.	On December 31, journalize the entry to record the admission of Gorman, who is to receive a bonus of $5,470. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
b.	What are the capital balances of each partner after the admission of the new partner?
c.	Why are tangible assets adjusted to current market prices, prior to admitting a new partner?