Bob and Sam Formed a Partnership

Bob and Sam formed a partnership. Bob invested $19,000, cash; Sam invested $8,000 cash and equipment with a fair value of $6,000. The proper entry to record this is to:

A) debit Cash $27,000; debit Equipment $6,000; credit Capital $33,000.
B) debit Cash $27,000; debit Equipment $6,000; credit Accounts Payable $33,000.
C) debit Cash $27,000; debit Equipment $6,000; credit Bob's Capital $19,000; and credit Sam's Capital $14,000.
D) debit Cash $27,000; credit Bob's Capital $19,000; and credit Sam's Capital $8,000.

Correct Answer:

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