Steve Owns 64% and Mark Owns 36% of a Partnership

question 86

Multiple Choice

Steve owns 64% and Mark owns 36% of a partnership business.They purchase equipment with a suggested value of $9,600.The current market value of the equipment at the time of purchase was $9,100.At the time of the balance sheet preparation,depreciation of $160 was recorded.Based on the information provided,which of the following is true of the partnership balance sheet?

• A)The Equipment account will be debited at $9,100 on the date of purchase.
• B)The Equipment account will be debited at $8,940 on the date of purchase.
• C)The Equipment account will be debited at $9,600 on the date of purchase.
• D)The Equipment account will be debited at $9,440 on the date of purchase.

---

Definitions:

Condensed Income Statement

A simplified financial statement showing the gross revenue, expenses, and net income of a company, omitting detailed accounts.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Supplies Expense

The cost recognized in the accounting period for supplies used, regardless of when the supplies were purchased.

Landscaping Revenue

Income generated from services related to the modification, maintenance, and beautification of outdoor landscapes.