Barbara Redburn and John Nichols are partners with capital balances as follows: Redburn $200,000 and Nichols $250,000. The partners share profit and losses in a 3:2 ratio respectively. On January 1 Smith is admitted into the partnership for a 35% ownership interest in exchange for an investment of cash into the partnership. Required: Prepare the journal entry on January 1 assuming Smith invests $150,000 into the partnership.