In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.Refer to the information provided above. Erin invests $50,000 for a one-fifth interest in the total capital of $230,000. The journal entry to record Erin's admission into the partnership would include
A. a credit to Katy, Capital for $1,600.
B. a credit to Cash for $50,000.
C. a debit to Jacob, Capital for $2,400.
D. a credit to Erin, Capital for $50,000.
Answer: A
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