Reno contributed $104,000 in cash plus equipment valued at $27,000 to the RD Partnership.The journal entry to record the transaction for the partnership is:
A)Debit Cash $104,000;debit Equipment $27,000;credit RD Partnership,Capital $131,000.
B)Debit Cash $104,000;debit Equipment $27,000;credit Common Stock $131,000.
C)Debit Cash $104,000;debit Equipment $27,000;credit Reno,Capital $131,000.
D)Debit Reno,Capital $131,000;credit RD Partnership,Capital $131,000.
E)Debit RD Partnership,Capital $131,000;credit Reno,Capital $131,000.

Question

Quizplus · Accepted Answer

The partnership should record the cash and equipment contributions by debiting the respective asset accounts and crediting Reno's capital account for the total contribution amount.

Reno Contributed $104,000 in Cash Plus Equipment Valued at $27,000