Bloom and Plant Organize a Partnership on January 1

question 93

Multiple Choice

Bloom and Plant organize a partnership on January 1.Bloom's initial investment consists of $800 cash,$1,700 equipment and a $500 note payable reflecting a bank loan for the new business.Plant's initial investment is cash of $2,000.These amounts are the values agreed on by both partners.The journal entry to record Plant's investment is:

• A)Debit Cash $1,500;debit Note Payable $500;credit Plant,Capital $2,000.
• B)Debit Cash $2,000;credit Note Payable $500,credit Plant,Capital $1,500.
• C)Debit Bloom,Capital $2,000;credit Cash $2,000.
• D)Debit Cash $2,500;credit Note Payable $500;credit Plant,Capital $2,500.
• E)Debit Cash $2,000;credit Plant,Capital $2,000.