Instructions The capital accounts of Trent Henry and Tim Chou have balances of $160,000 and $100,000, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $35,000 and one-fourth of Chou's interest for $29,000. Clarke contributes $90,000 cash to the partnership, for which she is to receive an ownership equity of $90,000. 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 the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. b. What are the capital balances of each partner after the admission of the new partners? CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable 113 Allowance for Doubtful Accounts EXPENSES 114 Interest Receivable 510 Cost of Merchandise Sold 115 Notes Receivable 520 Salaries Expense 116 Inventory 521 Advertising Expense 117 Office Supplies 522 Depreciation Expense-Equipment 118 Store Supplies 523 Delivery Expense 119 Prepaid Insurance 524 Repairs Expense 120 Land 529 Selling Expenses 123 Equipment 531 Rent Expense 124 Accumulated Depreciation-Equipment 533 Insurance Expense 129 Asset Revaluations 534 Office Supplies Expense 133 Patent 535 Store Supplies Expense 536 Credit Card Expense LIABILITIES 537 Cash Short and Over 210 Accounts Payable 538 Bad Debt Expense 211 Salaries Payable 539 Miscellaneous Expense 213 Sales Tax Payable 710 Interest Expense 214 Interest Payable 215 Notes Payable EQUITY 310 Trent Henry, Capital 311 Trent Henry, Drawing 312 Tim Chou, Capital 313 Tim Chou, Drawing 314 LeAnne Gilbert, Capital 315 LeAnne Gilbert, Drawing 316 Becky Clarke, Capital 317 Becky Clarke, Drawing Journal a. On December 31, journalize the entries to record the admission of (1) Gilbert and (2) Clarke. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 Final Question b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance Trent Henry, Capital $ Tim Chou, Capital LeAnne Gilbert, Capital $ Becky Clarke, Capital $