Bloom and Plant organize a partnership on January 1. Bloom\'s initial investment

Question

Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $1,900 cash, $2.800 equipment and a $1,300 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $6,000 These amounts are the values agreed on by both partners. The journal entry to record Plant's investment is /5 oints awarded Multiple Choice Scored Debit Cash $4,700, debit Note Payable $1,300, credit Plant, Capital $6,000 Debit Cash $6,000, credit Note Payable $1,300, credit Piant, Copital $4,700 Debit Bloom, Capital $6,000, credit Cosh $6,000 Debit Cosh $7,300. credt Note Payable $1300, credit Plant, Capital $7.300 Debit Cash $6,000, credit Plant Copital $6.000 Prey 7 of 40 Ny> Type here to search DOLL

Explanation / Answer

JOUNRAL ENTRY FOR ADMISSION OF PARTNERS Journal Entries Date Account Title and explanation Debit Credit For Plant Journal Entry Cash $                    6,000       To Partner's Capital $                  6,000 So, Journal entry to Record the plant investment = Cash Debti $ 6,000 and Credit Plant Capital $ 6,000 So, Answer = Option 4 = Cash Debit $ 6,000 and Credit Plant Capital $ 6,000 Note: As per chegg guideline we have to answer only first question in multiple question.

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---