Anna and Naomi are partners. Anna has a capital balance of $49,000 and Naomi has a capital balance of $42,000. Gary invested $27,000 to acquire an ownership interest of $18,000. Which of the following is TRUE of the partnership journal entry to record the receipt of Gary's contribution? (Assume the existing partners equally divide the bonus.)
A) Cash is debited for $27,000 and Gary, Capital is credited for $18,000.
B) Cash is debited for $18,000 and Gary, Capital is credited for $18,000.
C) Cash is credited for $27,000 and Gary, Capital is debited for $18,000.
D) Cash is credited for $18,000 and Gary, Capital is debited for $18,000.
A) Cash is debited for $27,000 and Gary, Capital is credited for $18,000.
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