Floyd and Merriam start a partnership business on June 12, 2025. Their capital account balances as of December 31, 2026 stood as follows: Floyd Merriam They agreed to admit Ramelow into the business for a one third interest in the new partnership. Ramelow contributes cash in exchange for the partnership interest. Assume that Floyd and Merriam shared profits and losses equally before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?

A.

Cash	16,000
Merriam, Capital	4,500
Floyd, Capital	4,500
Ramelow, Capital		25,000

B.

Cash	16,000
Floyd, Capital		4,500
Merriam, Capital		4,500
Ramelow, Capital		7,000

C.

Merriam, Capital	12,500
Floyd, Capital	12,500
Ramelow, Capital		25,000

D.

Cash	16,000
Ramelow, Capital		16,000