Laura’s investment in a new partnership includes $1,000 in cash and $5,000 of eq

Question

Laura’s investment in a new partnership includes $1,000 in cash and $5,000 of equipment. The new partnership is assuming $500 of Laura’s accounts payable. The partnership entry should be which of the following?

a/ Debit Laura’s Capital $5,500; debit Accounts Payable $500; credit Cash $1,000; credit Equipment $5,000

b/ Debit Cash $1,000; debit Equipment $5,000; credit Laura’s Capital $6,000

c/ . Debit Cash $1,000; debit Equipment $5,000; credit Accounts Payable $500; credit Laura’s Capital $5,500

d/ Debit Laura’s Investment $5,500; credit Capital $5,500

Explanation / Answer

c/ . Debit Cash $1,000; debit Equipment $5,000; credit Accounts Payable $500; credit Laura’s Capital $5,500

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