Chart of Accounts

Moumal

Final Question

Instructions

The capital accounts of Trent Henry and Tim Chou have balances of $$145,500$ and $$98,300,$ respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one$-$fifth of Henry's interest for $$29,100$ and one$-$fourth of Chou's interest for $$19,500.$ Clarke contributes $$74,500$ cash to the partnership, for which she is to receive an ownership equity of $$74,500.$

Required:

A$.$ On December $31,$ journalize the entries to record the admission of $(1)$ Gilbert and $(2)$ Clarke. 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?