Jason Miller and Trevor Cane Organize a Partnership on January

question 70

Multiple Choice

Jason Miller and Trevor Cane organize a partnership on January 1. Miller initially invests cash of $15,000 and equipment with a fair value of $80,000 with an outstanding note balance of $33,000 that the partnership assumes as debt. Cane initially invests $50,000 cash. The journal entry to record Miller's investment is:

• A)Debit J.Miller, Capital $62,000; credit Cash $15,000; credit Equipment $47,000.
• B)Debit Cash $15,000; debit Equipment $80,000; credit J.Miller, Capital $62,000; credit Notes Payable $33,000.
• C)Debit Cash $15,000; debit Equipment $47,000; credit J.Miller, Capital $62,000.
• D)Debit Cash $15,000; debit J.Miller, Capital $32,000; credit Equipment $80,000; credit Notes Payable $33,000.
• E)Debit Cash $15,000; debit Equipment $80,000; credit J.Miller, Capital $95,000.

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Definitions:

Apples

A common fruit consumed worldwide, often used as an example in economic models and comparisons.

Oranges

A citrus fruit known for its vibrant color and sweet, tangy flavor, often consumed fresh or used in juices.

Marginal Rate

The amount by which a quantity changes with respect to a change in another quantity, often used in the context of taxes or productivity.

Utility Function

Formula that assigns a level of utility to individual market baskets.