Admitting New Partners Who Buy an Interest and Contribute Assets

The capital accounts of Trent Henry and Tim Chou have balances of $125,500 and $90,400, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henrys interest for $28,900 and one-fourth of Chous interest for $19,900. Clarke contributes $30,600 cash to the partnership, for which she is to receive an ownership equity of $30,600.

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

	Trent Henry, Capital	fill in the blank c7a5affeffde04b_2	fill in the blank c7a5affeffde04b_3
	Tim Chou, Capital	fill in the blank c7a5affeffde04b_5	fill in the blank c7a5affeffde04b_6
	LeAnne Gilbert, Capital	fill in the blank c7a5affeffde04b_8	fill in the blank c7a5affeffde04b_9

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

	Cash	fill in the blank 5e6a9e073065fc7_2	fill in the blank 5e6a9e073065fc7_3
	Becky Clarke, Capital	fill in the blank 5e6a9e073065fc7_5	fill in the blank 5e6a9e073065fc7_6

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

Partner	Capital Balance
Trent Henry	$fill in the blank a8a928075ff4fdb_1
Tim Chou	$fill in the blank a8a928075ff4fdb_2
LeAnne Gilbert	$fill in the blank a8a928075ff4fdb_3
Becky Clarke	$fill in the blank a8a928075ff4fdb_4