(Solution) - The capital accounts of Trent Henry and Paul Chavez have -(2025 Original AI-Free Solution)

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The capital accounts of Trent Henry and Paul Chavez have balances of $140,000 and $90,000, respectively. LeAnne Gilbert and Jen Faber are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $30,000 and one-fourth of Chavez's interest for $20,000. Faber contributes $75,000 cash to the partnership, for which she is to receive ownership equity of $75,000.
a. Journalize the entries to record the admission of (1) Gilbert and (2) Faber.
b. What are the capital balances of each partner after the admission of the new partners?