SReising Contributed $48,000 in Cash Plus Equipment Valued at $73,000

question 43

Multiple Choice

S.Reising contributed $48,000 in cash plus equipment valued at $73,000 to the Reising Construction Partnership.The journal entry to record the transaction for the partnership is:

• A)
• \(\begin{array}{|l|c|c|}
• \hline \text { Cash. } & 48,000 \\
• \hline \text { Equipment. } & 73,000 \\
• \hline\text { S. Reising, Capital. }&&121,000\\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|cc||}
• \hline \text { Cash. } & 48,000 \\
• \hline \text { Equipment. } & 73,000 \\
• \hline\text { Reising Construction Partnership, Capital }&&121,000\\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|c|c|}
• \hline \text { Reising Construction Partnership} & 121,000 & \\
• \hline \text { S. Reising, Capital } && 211,000 \\
• \hline
• \end{array}\)
• D)
• \(\begin{array}{|l|c|c|}
• \hline\text { S. Reising, Capital } & 121,000 & \\
• \hline \text { Reising Construction Partnership, Capital } & & 121,000\\
• \hline
• \end{array}\)
• E)
• \(\begin{array}{|l|c|c|}
• \hline \text { Cash. } & 48,000 \\
• \hline \text { Equipment. } & 73,000 \\
• \hline\text { Common Stock}&&121,000\\
• \hline
• \end{array}\)

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Definitions:

ESOs

Employee Stock Options (ESOs) are a form of equity compensation granted by companies to employees, allowing them to purchase company shares at a fixed price for a certain period.

Call Options

Financial derivatives that give the holder the right but not the obligation to buy a specific stock or asset at a predetermined price within a specified period.

American Call Option

An options contract that allows the holder to buy the underlying asset at a specified price at any time before or on the expiration date.

Variance

A statistical measure that represents the dispersion of data points in a data set around the mean, indicating how spread out the data is.