The capital accounts of Jamie Dexter and Max Gee have balances of $147,400 and $92,600, respectively. Darcey Lind and Loren Rothman are to be admitted to the partnership. Darcey Lind buys one-fifth of Jamie Dexter's interest for $27,400 and one-fourth of Max Gee's interest $19,000. Loren Rothman contributes $75,000 cash to the partnership, for which she is to receive an ownership equity of $75,000.

a. On December 31, journalize the entries to record the admission of (1) Darcey Lind and (2) Loren Rothman.

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