Ask Question
BusinessBusiness
24 May, 06:30

David and Daniel formed a partnership. David invested $10,000 in cash; Daniel invested $5,000 in cash and equipment valued at $6,000. The proper entry to record this is which of the following?

+5
Answers (1)
  1. 24 May, 06:33
    0
    Debit Cash $15,000, debit Equipment $6,000, credit David's Capital $10,000 and credit Daniel's Capital $11,000

    Explanation:

    Contribution of capital by partners will result in an increase in cash balance as indicated by a debit to cash account. Similarly, contribution of equipment will again be indicated by a debit to equipment account as it would result in the creation/increase in the value of an asset (equipment account). The capital contributed by both partner's will be reported in their capital accounts respectively as indicated by a credit to David and Daniel Capital accounts. Cash and equipment will be reported on the asset side of the balance sheet and capital accounts will get reported on the liabilities of the balance sheet of the partnership firm.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “David and Daniel formed a partnership. David invested $10,000 in cash; Daniel invested $5,000 in cash and equipment valued at $6,000. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Capital budgeting decisions are risky because the outcome is uncertain, large amounts are usually involved, the investment involves a long-term commitment, and the decision could be difficult or impossible to reverse. True / False.
Answers (1)
Of the fixed factory overhead costs, $72,000 are avoidable. Another company has offered to sell 5,000 units of the same part to Gonzalez for $70.00 per unit.
Answers (1)
Alcohol-related accidents and violence are the leading cause of death for americans under the age of 35. if you drive with a bac in the. 10 to. 14 range, your chances of being killed in a single-vehicle crash are:
Answers (1)
Which of the following is an example of an illiquid asset? accounts receivable money in a checking account a truck owned by a moving company an outstanding bill owed to a supplier
Answers (1)
Jeff has a $2,000 salary and a $100 dividend income this month. This month Jeff has rent and utilities of $800 and he spent $350 on groceries and $100 on clothing. What is his net cash flow this month?
Answers (1)
New Questions in Business
For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio is less than the weighted average of the betas of the individual stocks. b.
Answers (1)
What publication can give you an idea of how administrative jobs are going to change in the future? A: Office Pro B: Occupational Outlook Handbook C: From 9 to 5 D: The Executary
Answers (1)
At a four-way stop, if two cars arrive at the intersection at the same time: A) the larger car has the right of way B) the vehicle on the right yields to the vehicle on the left C) the smaller car has the right of way D) the vehicle on the left
Answers (1)
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,000 will be accepted.
Answers (1)
Zappos, the online shoe and clothing marketer, promises free shipping and free returns on any of its products, no questions asked. This is an example of how Zappos has a strong competitive advantage through
Answers (1)
Home » Business » David and Daniel formed a partnership. David invested $10,000 in cash; Daniel invested $5,000 in cash and equipment valued at $6,000. The proper entry to record this is which of the following?
Sign Up Forgot Password?