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19 December, 14:33

On July 1, R. Selleck and M. Monroe formed a partnership to provide legal services to clients. Selleck's investment is $10,000 cash and office equipment of $5,000. Monroe's net investment is also $10,000, but it is comprised of cash $15,000 and a note payable reflecting a bank loan for the new business $5,000.

Record R. Selleck's investment by selecting the account names from the drop-down menus and entering the dollar amounts.

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  1. 19 December, 14:46
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    See explanation section

    Explanation:

    Journal entry to record R. Selleck's Investment is as follows:

    Debit Cash $10,000

    Debit Office Equipment $5,000

    Credit Capital, R. Selleck $15,000

    Since he provides cash and office equipment, both the investment will be considered as capital of R. Selleck. Since he does not take any loan to provide money to the partnership business, no entry is made for loan.
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