Larry and Sam were partners with capital account balances of $65,000 and $85,000, respectively. Charles directly paid $30,000 to Larry and $40,000 to Sam for 35% of their interests in the partnership. Larry and Sam shared income in the ratio of 3:2. They believed that revaluation of the partnership was appropriate when a new partner was admitted.

Required:

Prepare the journal entries to record the admission of Charles to the partnership.