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Admitting New Partner Who Contributes Assets

After the tangible assets have been adjusted to current market prices, the capital accounts of Brad Paulson and Drew Webster have balances of $$114,000$ and $$160,000,$ respectively. Austin Neel is to be admitted to the partnership, contributing $$76,000$ cash to the partnership, for which he is to receive an ownership equity of $$99,000.$ All partners share equally in income.

a$.$ Journalize the entry to record the admission of Neel, who is to receive a bonus of $$23,000.$ For a compound transaction, if an amount box does not require an entry, leave it blank.

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

Partner

Balance

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