Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $600 cash, $1900 equipment and a $500 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $3000. These amounts are the values agreed on by both partners. The journal entry to record Plant's investment is:

A. Debit Cash $2500; debit Note Payable $500; credit Plant, Capital $3000.
B. Debit Cash $3000; credit Plant, Capital $3000.
C. Debit Cash $3000; credit Note Payable $500, credit Plant, Capital $2500.
D. Debit Bloom, Capital $3000; credit Cash $3000.
E. Debit Cash $3500; credit Note Payable $500; credit Plant, Capital $3500.


Answer: B

Business

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