Tricia and Jennifer Formed a Partnership

question 40

Multiple Choice

Tricia and Jennifer formed a partnership.Tricia invested $15,000 cash;Jennifer invested $8,000 cash,equipment with a fair value of $7,000,and $2,000 accounts payable.The proper entry to record this is:

• A)debit Cash $23,000;debit Equipment 7,000;credit Accounts Payable $2,000;credit Tricia's Capital $15,000;and credit Jennifer's Capital $13,000.
• B)debit Cash $23,000;debit Equipment 5,000;debit Accounts Payable $2,000;credit Tricia's Capital $15,000;and credit Jennifer's Capital $15,000.
• C)debit Cash $23,000;debit Equipment $7,000;credit Tricia's Capital $15,000;and credit Jennifer's Capital $15,000.
• D)debit Cash $21,000;debit Equipment $7,000;credit Tricia's Capital $15,000;and credit Jennifer's Capital $13,000.

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Definitions:

Entrepreneur

An individual who organizes and operates a business, taking on greater than normal financial risks in order to do so.

Satisfaction Per Dollar

A measure of the utility or enjoyment a consumer receives from a product or service relative to its cost.

Market Entry And Exit

The process by which new competitors enter or existing firms exit a market, influencing competition and market dynamics.

Industry Size

The overall scale or breadth of a sector, often measured by the number of firms, employees, or the volume of production.