Admitting New Partner With Bonus 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 $32,000 and $42,000, 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 $20,000. a. Determine the recipient and amount of the partner
bonus b. Provide the journal entry to admit Solano into the partnership. For a compound
transaction, if an amount box does not require an entry, leave it blank c. Why would a bonus be
paid in this situation? Apparently, Jenkins and Tanner value offered by Solano.
Solution.
Admitting New Partner With Bonus Cody Jenkins and Lacey Tanner formed.pdf
1. Admitting New Partner With Bonus 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 $32,000 and $42,000, 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 $20,000. a. Determine the recipient and amount of the partner
bonus b. Provide the journal entry to admit Solano into the partnership. For a compound
transaction, if an amount box does not require an entry, leave it blank c. Why would a bonus be
paid in this situation? Apparently, Jenkins and Tanner value offered by Solano.
Solution
