In a partnership business, Jack has an ownership of 60% and Teresa has an ownership of 40%. For growing the business, Jack contributed $7,000 and Teresa contributed $3,000 on July 1. Which of the following is true of this scenario?AOnly the total contribution of $10,000 will be recordedBIndividual contribution of $7,000 by Jack and $3,000 by Teresa will be recordedCEither the total contribution of $10,000 or the contribution in the ownership ratio will be recordedD60% of Jack's contribution and 40% of Teresa's contribution will be recorded

Capital invested by partners would increase the capital of the respective partners.

Answered: In a partnership business, Jack has an…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In a partnership business, Jack has an ownership of 60% and Teresa has an ownership of 40%. For growing the business, Jack contributed $7,000 and Teresa contributed $3,000 on July 1. Which of the following is true of this scenario?

A	Only the total contribution of $10,000 will be recorded
B	Individual contribution of $7,000 by Jack and $3,000 by Teresa will be recorded
C	Either the total contribution of $10,000 or the contribution in the ownership ratio will be recorded
D	60% of Jack's contribution and 40% of Teresa's contribution will be recorded

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