Ruby and Anita Are Partners

question 69

Multiple Choice

Ruby and Anita are partners.Ruby has a capital balance of $270,000 and Anita has a capital balance of $180,000.Denis invests a building with a current market value of $170,000 to acquire an interest in the new partnership.Which of the following is true of the journal entry to record this transaction? (Assume no bonus to any partner. )

• A)Building will be debited for $170,000,Ruby,Capital and Anita,Capital will be credited for $85,000 each.
• B)Building will be debited for $170,000 and Denis,Capital will be credited for $170,000.
• C)Ruby,Capital and Anita,Capital will be debited for $85,000 each and Denis,Capital will be credited for $170,000.
• D)Ruby,Capital and Anita,Capital will be credited for $85,000 each and Denis,Capital will be debited for $170,000.

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Definitions:

Standard Error

A statistical measure of the variability or precision of a sample mean, as an estimate of the population mean.

Population Average

The mean value of a set of characteristics or measurements for the entire population.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, showing how much variation exists from the average.

Square Root

A mathematical function that produces the original number when multiplied by itself.