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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
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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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 Smith, Capital Cash Equipment Accumulated Depreciation O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment Accumulated Depreciation Accounts Payable Smith, Capital - Equipment 51,000 14,000 51,000 29,000 36.000 14,000 29,000 8000 Equipment 29,000 54,000 51,000 26,000 51,000 26,000 6000 6000 29,000 42.000
Transcribed Image Text: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 Smith, Capital Cash Equipment Accumulated Depreciation O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment Accounts Payable Smith, Capital O Cash Equipment Accumulated Depreciation Accounts Payable Smith, Capital - Equipment 51,000 14,000 51,000 29,000 36.000 14,000 29,000 8000 Equipment 29,000 54,000 51,000 26,000 51,000 26,000 6000 6000 29,000 42.000
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