Jerry and Sherry own and operate a partnership. Jerrys capital balance is $50,000 and Sherrys is $55,000. Jerry and Sherry decided to admit a new partner, Allison, to their partnership. By the terms of their partnership agreement, Jerry and Sherry share income/loss equally.

Allison intends to contribute $40,000 cash to receive a twenty-five percent interest in the partnership

Required:

a. Revalue the partnership assets

b. Determine the total equity of the partnership after the new partner is admitted

c. Determine the new partner share of the total equity

d. Determine the bonus resulting from Allisons equity of her contribution

e. Make journal entries to record Allisons admission to the partnership.

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