MC Qu. 114 Reno contributed... Reno contributed $206,000 in cash plus equipment

Question

MC Qu. 114 Reno contributed...

Reno contributed $206,000 in cash plus equipment valued at $47,000 to the RD Partnership. The journal entry to record the transaction for the partnership is:

Multiple Choice

Debit Cash $206,000; debit Equipment $47,000; credit RD Partnership, Capital $253,000.

Debit Cash $206,000; debit Equipment $47,000; credit Common Stock $253,000.

Debit Cash $206,000; debit Equipment $47,000; credit Reno, Capital $253,000.

Debit Reno, Capital $253,000; credit RD Partnership, Capital $253,000.

Debit RD Partnership, Capital $253,000; credit Reno, Capital $253,000.

Explanation / Answer

Journal entry :

So answer is c) Debit Cash $206,000; debit Equipment $47,000; credit Reno, Capital $253,000.

Date account and explanation debit credit Cash 206000 Equipment 47000 Reno's capital 253000 (To record investment in partnership)

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