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 $77,900 and $34,800, 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 $27,400 CHART OF ACCOUNTS Jenkins, Tanner, and Solano General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Office Supplies 118 Store Supplies 119 Prepaid Insurance 120 Land 123 Equipment 124 Accumulated Depreciation Equipment 129 Asset Revaluations 133 Patent LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY 310 Cody Jenkins, Capital 311 Cody Jenkins, Drawing 312 Lacey Tanner, Capital 313 Lacey Tanner, Drawing 314 Valeria Solano, Capital 315 Valeria Solano, Drawing REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 520 Salaries Expense 521 Advertising Expense 522 Depreciation Expense Equipment 523 Delivery Expense 524 Repairs Expense 529 Selling Expenses 531 Rent Expense 533 Insurance Expense 534 Office Supplies Expense 535 Store Supplies Expense 536 Credit Card Expense 537 Cash Short and Over 538 Bad Debt Expense 539 Miscellaneous Expense 710 Interest Expense Required A Determine the recipient and amount of the partner bonus B On December 31, provide the journal entry to admit Solano into the partnership Refer to the Chart of Accounts for exact wording of account titles C Why would a bonus be paid in this situation A Determine the recipient(s) and amount of the partner bonus Recipient(s) Check all that apply Lacey Tanner Valeria Solano Cody Jenkins Amount of the partner bonus B On December 31, provide the journal entry to admit Solano into the partnership Refer to the Chart of Accounts for exact wording of account titles PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 C Why would a bonus be paid in this situation Jenkins and Tanner apparently value the expertise offered by Solano Solano apparently is willing to pay extra for the privilege of joining the partnership Jenkins and Tanner apparently want to ensure that all assets are valued appropriately when taking on a new partner

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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

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 $77,900 and $34,800, 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 $27,400.

CHART OF ACCOUNTS

Jenkins, Tanner, and Solano

General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable
113	Allowance for Doubtful Accounts
114	Interest Receivable
115	Notes Receivable
116	Inventory
117	Office Supplies
118	Store Supplies
119	Prepaid Insurance
120	Land
123	Equipment
124	Accumulated Depreciation-Equipment
129	Asset Revaluations
133	Patent

	LIABILITIES
210	Accounts Payable
211	Salaries Payable
213	Sales Tax Payable
214	Interest Payable
215	Notes Payable

	EQUITY
310	Cody Jenkins, Capital
311	Cody Jenkins, Drawing
312	Lacey Tanner, Capital
313	Lacey Tanner, Drawing
314	Valeria Solano, Capital
315	Valeria Solano, Drawing

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
520	Salaries Expense
521	Advertising Expense
522	Depreciation Expense-Equipment
523	Delivery Expense
524	Repairs Expense
529	Selling Expenses
531	Rent Expense
533	Insurance Expense
534	Office Supplies Expense
535	Store Supplies Expense
536	Credit Card Expense
537	Cash Short and Over
538	Bad Debt Expense
539	Miscellaneous Expense
710	Interest Expense

	Required:
A.	Determine the recipient and amount of the partner bonus.
B.	On December 31, provide the journal entry to admit Solano into the partnership. Refer to the Chart of Accounts for exact wording of account titles.
C.	Why would a bonus be paid in this situation?

A. Determine the recipient(s) and amount of the partner bonus.

Recipient(s): Check all that apply.

Lacey Tanner

Valeria Solano

Cody Jenkins

Amount of the partner bonus: .

B. On December 31, provide the journal entry to admit Solano into the partnership. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

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

Jenkins and Tanner apparently value the expertise offered by Solano.

Solano apparently is willing to pay extra for the privilege of joining the partnership.

Jenkins and Tanner apparently want to ensure that all assets are valued appropriately when taking on a new partner.

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Step: 1

A Determine the recipient and amount of the partner bonus To determine the bonus in the partnership admission process we first need to calculate the t... blur-text-image