The capital accounts of Barbara Shaw and Jane O'Halloran have balances of $120,000 and $100,000, respectively. Juan Rohon and Marco Galen are to be admitted to the partnership. Rohon buys one-fifth of Shaw's interest for $40,000 and one-fourth of O'Halloran's interest for $30,000. Galen contributes $50,000 cash to the partnership, for which he is to receive an ownership equity of $50,000.
a. Journalize the entries to record the admission of
(1) Rohon
(2) Galen.
b. What are the capital balances of each partner after the admission of the new partners?