Ruby and Anita are partners.Ruby has a capital balance of $270,000 and Anita has a capital balance of $180,000.Denis invests a building with a current market value of $170,000 to acquire an interest in the new partnership.Which of the following is true of the journal entry to record this transaction? (Assume no bonus to any partner. )
A) Building will be debited for $170,000,Ruby,Capital and Anita,Capital will be credited for $85,000 each.
B) Building will be debited for $170,000 and Denis,Capital will be credited for $170,000.
C) Ruby,Capital and Anita,Capital will be debited for $85,000 each and Denis,Capital will be credited for $170,000.
D) Ruby,Capital and Anita,Capital will be credited for $85,000 each and Denis,Capital will be debited for $170,000.
Correct Answer:
Verified
Q112: Floyd and Merriam start a partnership business
Q113: Keith and Jim are partners.Keith has a
Q114: Raul and Bianca are partners.Raul has a
Q115: Which of the following is true when
Q116: Keith and Jim are partners.Keith has a
Q118: Rex and Sandy are partners.Rex has a
Q119: Shaun and Rick are partners.Shaun has a
Q120: Frank and Harry are partners.Frank has a
Q121: Mathew,Patrick,and Robin and have capital balances of
Q147: Which of the following occurs if a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents