Rodriguez and Ying Start a Partnership on July 1,2019 B)

question 114

Multiple Choice

Rodriguez and Ying start a partnership on July 1,2019.Rodriguez contributes $4100 cash,furniture with a current market value of $47,000,accounts payable with a current market value of $16,000 and equipment with a current market value of $23,000.Which of the following is the correct journal entry to record Rodriguez's partnership investment?

• A) \[\begin{array} { | l | r | l | }
• \hline \text { Cash } & 4100 & \\
• \hline \text { Furniture } & 47,000 & \\
• \hline \text { Equipment } & 23,000 & \\
• \hline \text { Accounts Payable } & 16,000 & \\
• \hline \text { Rodriguez, Capital } & & 90,100 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | l | }
• \hline \text { Cash } & 4100 & \\
• \hline \text { Furniture } & 47,000 & \\
• \hline \text { Equipment } & 23,000 & \\
• \hline \text { Accounts Payable } & & 16,000 \\
• \hline \text { Rodriguez, Capital } & & 58,100 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Cash } & 4100 & \\
• \hline \text { Furniture } & 47,000 & \\
• \hline \text { Equipment } & & 23,000 \\
• \hline \text { Accounts Payable } & & 16,000 \\
• \hline \text { Rodriguez, Capital } & & 12,100 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Accounts Payable } & 16,000 & \\
• \hline \text { Rodriguez, Capital } & 58,100 & \\
• \hline \text { Cash } & & 4100 \\
• \hline \text { Furniture } & & 47,000 \\
• \hline \text { Equipment } & & 23,000 \\
• \hline
• \end{array}\]

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Definitions:

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or the business cycle, whichever is longer.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership stake of shareholders.

Working Capital

The discrepancy between a company's immediate assets and its short-term obligations, revealing the available liquidity for operating activities.

Plant and Equipment

Physical assets used in the operation of a business, including machinery, buildings, and vehicles.