Practice Problem 2 (15 minutes) George and Winifred formed a partnership on November 15, 2020. On that day, George contributed $5,000 cash and a delivery truck with a carrying value of $8,000 and a fair value of $10,000, and Winifred contributed $25,000 cash to the partnership. The partners agreed that their compensation would be allocated in the following manner: a salary of $40,000 to each partner annually interest of 5% on their capital balances each year (before income allocation) the remaining profits allocated evenly between the partners . Required: a) Record the journal entry required on formation of the partnership. b) On December 31, 2021, George and Winifred decide to let a new partner, Chip, into their partnership. Chip contributes $25,000 cash for a 25% interest in the partnership. On December 31, 2021, before Chip's admission, the partnership has net assets of $65,000 and George's and Winifred's capital balances are $27,000 and $38,000, respectively. Assuming the partnership uses the bonus method of admitting a new partner, record any journal entries required to admit Chip into the partnership. 279 c) Prepare the partners' equity section of the balance sheet for the partnership at December 31, 2021, after the admission of Chip as the third partner