Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $800 cash, $1,700 equipment and a $500 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $2,000. These amounts are the values agreed on by both partners. The journal entry to record Plant's investment is:
A) Debit Cash $1,500; debit Note Payable $500; credit Plant, Capital $2,000.
B) Debit Cash $2,000; credit Note Payable $500, credit Plant, Capital $1,500.
C) Debit Bloom, Capital $2,000; credit Cash $2,000.
D) Debit Cash $2,500; credit Note Payable $500; credit Plant, Capital $2,500.
E) Debit Cash $2,000; credit Plant, Capital $2,000.
E) Debit Cash $2,000; credit Plant, Capital $2,000.
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