Question 7 (6 points) Merlin and Watson are partners with capital balances as follows: Martin $150,000 and Wilson $200,000. The partners share profit and losses in a 2:3 ratio respectively. On January 1 Short is admitted into the partnership for a 15% ownership interest in exchange for an investment of cash into the partnership. Required: Prepare the journal entry on January 1 assuming Short invests $75,000 into the partnership. 111