Table 12-5 Jim and Joe Are Partners Agreeing to Share Profits and Profits

Table 12-5
Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently $240,000 and $260,000, respectively.
-Refer to Table 12-5.If Jewel is given a 25% interest in the partnership in exchange for $200,000,the entry to record her investment includes a:

A) credit to Jim, Capital for $6,250
B) debit to Joe, Capital for $18,750
C) credit to Jewel, Capital for $200,000
D) debit to Jewel, Capital for $175,000