Jones and Smith start a partnership on January 1 of the current year. Smith contributes $51,000 cash, a piece of equipment that originally cost $26,000 (accumulated depreciation of $6000 and a current market value of$14,000), and accounts payable with a current market value of $29,000. Which of the following is the correct journal entry to record Smith's partnership investment?O Accounts PayableSmith, CapitalCashEquipmentAccumulated DepreciationO CashEquipmentAccounts PayableSmith, CapitalO CashEquipmentAccounts PayableSmith, CapitalO CashEquipmentAccumulated DepreciationAccounts PayableSmith, Capital- Equipment51,00014,00051,00029,00036.00014,00029,0008000Equipment29,00054,00051,00026,00051,00026,0006000600029,00042.000

As per the accounting rules, Assets and expenses are debited when increases and credited when…

Jones and Smith start a partnership on January 1 of the current year. Smith contributes $51,000 cash, a piece of equipment that originally cost $26,000 (accumulated depreciation of $6000 and a current market value of $14,000), and accounts payable with a current market value of $29,000. Which of the following is the correct journal entry to record Smith's partnership investment? O Accounts Payable 29,000 Smith, Capital 54,000 Cash Equipment Accumulated Depreciation. O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment 51.000 14,000 51,000 29,000 36,000 14,000 29,000 8000 Equipment Accumulated Depreciation - Equipment Accounts Payable Smith, Capital 51.000 26,000 51,000 26.000 6000 6000 29,000 42,000

Jones and Smith start a partnership on January 1 of the current year. Smith contributes $51,000 cash, a piece of equipment that originally cost $26,000 (accumulated depreciation of $6000 and a current market value of $14,000), and accounts payable with a current market value of $29,000. Which of the following is the correct journal entry to record Smith's partnership investment? O Accounts Payable 29,000 Smith, Capital 54,000 Cash Equipment Accumulated Depreciation. O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment 51.000 14,000 51,000 29,000 36,000 14,000 29,000 8000 Equipment Accumulated Depreciation - Equipment Accounts Payable Smith, Capital 51.000 26,000 51,000 26.000 6000 6000 29,000 42,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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