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Tricia and Jennifer Formed a Partnership

Question 14

Multiple Choice

Tricia and Jennifer formed a partnership. Tricia invested $16,000 cash; Jennifer invested $12,000 cash, equipment with a fair value of $15,000, and $5,000 accounts payable. The proper entry to record this is:


A) debit Cash $28,000; debit Equipment $15,000; credit Accounts Payable $5,000; credit Tricia's Capital $16,000; and credit Jennifer's Capital $22,000.
B) debit Cash $28,000; debit Equipment $10,000; debit Accounts Payable $5,000; credit Tricia's Capital $21,500; and credit Jennifer's Capital $21,500.
C) debit Cash $28,000; debit Equipment $15,000; credit Tricia's Capital $21,500; and credit Jennifer's Capital $21,500.
D) debit Cash $23,000; debit Equipment $15,000; credit Tricia's Capital $16,000; and credit Jennifer's Capital $22,000.

Correct Answer:

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