Admitting New Partners Who Buy an Interest and Contribute Assets

The capital accounts of Trent Henry and Tim Chou have balances of $189,000 and $136,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henrys interest for $43,500 and one-fourth of Chous interest for $29,900. Clarke contributes $46,100 cash to the partnership, for which she is to receive an ownership equity of $46,100.

a1. Journalize the entry to record the admission of Gilbert. If an amount box does not require an entry, leave it blank.

a2. Journalize the entry to record the admission of Clarke. If an amount box does not require an entry, leave it blank.

b. What are the capital balances of each partner after the admission of the new partners?

Partner
Trent Henry
Tim Chou
LeAnne Gilbert
Becky Clarke