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The capital accounts of Trent Henry and Paul Chavez have balances of $146,000 and $93,800, respectively. LeAnne Gilbert and Jen Faber are to be admitted to thepartnership. Gilbert buys one-fifth of Henry's interest for $29,100 and one-fourth of Chavez's interest for $21,300. Faber contributes $69,400 cash to the partnership, for which she is to receive an ownership equity of $69,400.
Required:
A. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Faber. Refer to the Chart of Accounts for exact wording of account titles.
B. What are the capital balances of each partner after the admission of the new partners?
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