The capital accounts of Jonathan Faber and Faheem Ahmad have balances of $150,000 and $110,000, respectively. Lauren Wells and Rachel Lee are to be admitted to the partnership. Wells buys one-fifth of Faber's interest for $35,000 and one-fourth of Ahmad's interest for $25,000. Lee contributes $70,000 cash to the partnership, for which she is to receive an ownership equity of $70,000.
a. Journalize the entries to record the admissions of the following. (For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0").
Admission of Lee:
b. What are the capital balances of each partner after the admission of the new partners? Partner Capital Balance Jonathan Faber $ Faheem Ahmad $ Lauren Wells $ Rachel Lee $