Tim and Michelle have decided to form a partnership. Tim contributes $8,000 cash and $2,000 in merchandise inventory. While journalizing this transaction:
A)Tim, Capital will be debited for $10,000.
B)Tim, Capital will be credited for $10,000.
C)Tim, Capital will be credited for $6,000 and Michelle, Capital will be credited for $4,000.
D)Tim, Capital will be debited for $6,000 and Michelle, Capital will be debited for $4,000.

Question

Quizplus · Accepted Answer

Tim's total contribution to the partnership is $10,000 ($8,000 cash + $2,000 inventory), so Tim, Capital will be credited for $10,000.

Tim and Michelle Have Decided to Form a Partnership