After the tangible assets have been adjusted to current market prices, the capital accounts of Brandon Newman and Latrell Osbourne have balances of $89,000 and $142,000, respectively. Juan Rivas is to be admitted to the partnership, contributing $60,000 cash to the partnership, for which he is to receive an ownership equity of $78,000. All partners share equally in income.

a. Journalize the entry to record the admission of Rivas, who is to receive a bonus of $18,000. For a compound transaction, if an amount box does not require an entry, leave it blank.

	Cash
	Brandon Newman, Capital
	Latrell Osbourne, Capital
	Juan Rivas, Capital

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

Partner	Balance
Brandon Newman	$
Latrell Osbourne	$
Juan Rivas	$78000