Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $60,000 and $78,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $37,000.

Question Content Area

a. Determine the recipient and amount of the partner bonus. $fill in the blank 707946fc604c037_1

Cody JenkinsCody Jenkins and Lacey TannerLacey TannerValeria Solano

Question Content Area

b. Provide the journal entry to admit Solano into the partnership. If an amount box does not require an entry, leave it blank.

blank	CashCody Jenkins, DrawingLacey Tanner, DrawingValeria Solano, CapitalValeria Solano, Drawing	- Select -	- Select -
	Cody Jenkins, CapitalCody Jenkins, DrawingLacey Tanner, DrawingValeria Solano, CapitalValeria Solano, Drawing	- Select -	- Select -
	Cody Jenkins, DrawingLacey Tanner, CapitalLacey Tanner, DrawingValeria Solano, CapitalValeria Solano, Drawing	- Select -	- Select -
	CashCody Jenkins, CapitalCody Jenkins, DrawingLacey Tanner, CapitalValeria Solano, Capital	- Select -	- Select -

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c. Why would a bonus be paid in this situation?

Apparently, Jenkins and Tanner value

the capital investmentthe expertise

offered by Solano.