Allan and Ralph are partners.Allan has a capital balance of $92,000 and Ralph has a capital balance of $75,000.Carol invested $60,000 to acquire an ownership interest of $50,000.Which of the following is true of the impact of the transaction on the balance sheet?
A) Asset increases and the equity will remain unchanged.
B) Both assets and equity will increase.
C) Assets will increase and equity will decrease.
D) Assets will increase and the equity will remain unchanged.
Correct Answer:
Verified
Q103: Floyd and Merriam start a partnership business
Q105: Dominic and Morgan are partners.Dominic has a
Q106: Anna and Naomi are partners.Anna has a
Q108: Floyd and Merriam start a partnership business
Q109: Keith and Jim are partners.Keith has a
Q110: Floyd and Merriam start a partnership business
Q111: Floyd and Merriam start a partnership business
Q112: Floyd and Merriam start a partnership business
Q131: Issac and Karl are partners.Issac has a
Q139: Sarah and Jane formed a partnership with
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