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 Bloom's investment is:
A) Debit Cash $800; debit Equipment $1,700; credit Note Payable $500; credit Bloom, Capital $2,000.
B) Debit Cash $2,000; credit Bloom, Capital $2,000.
C) Debit Cash $800; debit Equipment $1,700; credit Bloom, Capital $2,500.
D) Debit Cash $800; debit Equipment $1,200; credit Bloom, Capital $2,000.
E) Debit Bloom, Capital $3,000; credit Common Stock $3,000.
A) Debit Cash $800; debit Equipment $1,700; credit Note Payable $500; credit Bloom, Capital $2,000.
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