Tim and Michelle Have Decided to Form a Partnership

Tim and Michelle have decided to form a partnership. Tim contributes $8,000 cash and $2,000 in merchandise inventory. While journalizing this transaction:

A) Tim, Capital will be debited for $10,000.
B) Tim, Capital will be credited for $10,000.
C) Tim, Capital will be credited for $6,000 and Michelle, Capital will be credited for $4,000.
D) Tim, Capital will be debited for $6,000 and Michelle, Capital will be debited for $4,000.

Correct Answer:

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