Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 27

Admitting new partners who buy an interest and contribute assets
The capital accounts of Trent Henry and Paul Chavez have balances of $140,000 and $90,000, respectively. LeAnne Gilbert and Jen Faber are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $30,000 and one-fourth of Chavez's interest for $20,000. Faber contributes $75,000 cash to the partnership, for which she is to receive an ownership equity of $75,000.
a. Journalize the entries to record the admission of (1) Gilbert and (2) Faber.
b. What are the capital balances of each partner after the admission of the new partners