After the tangible assets have been adjusted to current market prices, the capital accounts of Harper and Khalil have balances of $120,000 and $180,000, respectively. Fay is to be admitted to the partnership, contributing $90,000 cash, for which she is to receive an ownership equity of $120,000. All partners share equally in income.

Required:

A. Journalize the entry to record the admission of Fay

B. What are the capital balances of each partner after the admission of the new partner