Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Rosen and Noble decide to organize a partnership. Rosen invests $15,000 cash and

ID: 2388500 • Letter: R

Question

Rosen and Noble decide to organize a partnership. Rosen invests $15,000 cash and Noble contributes $12,000 cash and equipment having a book value of $6,000. Choose the entry to record Noble's investment in the partnership assuming the equipment has a fair value of $9,000.

a. Debit cash 12,000 , Debit Equipment 6,000 , and Credit Noble Capital 18,000
b. Debit equipment 6,000 and credit Noble Capital 6,000
c. Debit Cash 12,000 and credit Noble Capital 6,000
d. Debit cash 12,000 , Debit Equipment 9,000 , and Credit Noble Capital 21,000

Explanation / Answer

d. Debit cash $ 12,000 , Debit Equipment $ 9,000 , and Credit Noble Capital $ 21,000