Question

The capital accounts of Trent Henry and Tim Chou have balances of $146,000 and $93,800, 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 $21,300. Clarke contributes $69,400 cash to the partnership, for which she is to receive an ownership equity of $69,400.

	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? CHART OF ACCOUNTS Henry, Chou, Gilbert, and Clarke General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Interest Receivable 115 Notes Receivable 116 Inventory 117 Office Supplies 118 Store Supplies 119 Prepaid Insurance 120 Land 123 Equipment 124 Accumulated Depreciation-Equipment 129 Asset Revaluations 133 Patent LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 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 REVENUE 410 Sales 610 Interest Revenue 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 JOURNAL ACCOUNTING EQUATION Score: 49/63 DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 ✔ ✔ ✔ 2 ✔ ✔ ✔ 3 ✔ 4 ✔ 5 ✔ 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

Answer 1