1/ Bloom and Plant organize a partnership on January 1. Bloom’sinitial investment consists of $700 c

1/ Bloom and Plant organize a partnership on January 1. Bloom’sinitial investment consists of $700 cash, $1,400 equipment and a$1,200 note payable reflecting a bank loan for the new business.Plant’s initial investment is cash of $900. These amounts are thevalues agreed on by both partners. The journal entry to recordBloom’s investment is: Multiple Choice Debit Cash $700; debitEquipment $1,400; credit Note Payable $1,200; credit Bloom, Capital$900. Debit Cash $900;credit Bloom, Capital $900. Debit Cash $700; debitEquipment $1,400; credit Bloom, Capital $2,800. Debit Cash $700; debitEquipment $200; credit Bloom, Capital $900. Debit Bloom, Capital$3,300; credit Common Stock $3,300. 2/ The followinginformation is available regarding Grace Smit’s capital account inEnterprise Consulting Group, a general partnership, for a recentyear: What is Smit’s partner return on equity during the year inquestion? Multiple Choice 29.9% 44.6% 28.1% 12.4% 13.2% . . .

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