Answer to Question #62227 in Accounting for Hafsa

Question

3) 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

4) A statement of partner’s equity is the same as a statement of owner’s equity except that
A. there’s a capital account for all partners.
B. net income is assigned to one partner.
C. no additional investments by partners are shown on the statement.
D. There’s no difference in the statements.

Answer 1

3) C. Debit Cash $1,000; debit Equipment $5,000; credit Accounts Payable $500; credit Laura’s Capital $5,500.
4) C. no additional investments by partners are shown on the statement.