After the tangible assets have been adjusted to current market prices, the capital accounts of Mike Heil and Alan Delong have balances of $75,000 and $85,000, respectively. Felix Estavez is to be admitted to the partnership, contributing $50,000 cash to the partnership, for which he is to receive an ownership equity of $62,000. All partners share equally in income.
a. Journalize the entry to record the admission of Estavez, who is to receive a bonus of $12,000.
b. What are the capital balances of each partner after the admission of the new partner?