Question

Salary allowances. The ratio of capital investments. A fractional basis. Equal shares. Question 68 1 pts R. Stetson contributed $14,000 in cash plus office equipment valued at $7,000 to the SJ Partnership. The journal effry to record the transaction for the partnership is: Debit Cash $14,000; debit Office Equipment $7,000; credit SJ Partnership, Capital $21,000. Debit Cash $14,000; debit Office Equipment $7,000; credit R Stetson, Capital $21,000. Debit R. Stetson, Capital $21,000: credit SJ Partnership, Capital $21,000. Debit Cash $14,000; debit Office Equipment $7,000; credit Common Stock $21.000. Proctorio is sharing your screen. Stop sharing ViewSonic

Answer 1

1)	The correct journal entry would be
		Debit	Credit
	Cash	$         14,000
	Equipment	$           7,000
	R Sheldon Capital		$         21,000
	( to record contribution from partner)
Explanation of why other options are wrong:
1)	In the record of the partnership itself, its name would not be there.
	hence the first option is wrong.
2)	In the record of the partnership itself, its name would not be there.
	hence the third option is also wrong.
3)	The common stock concept is in companies only.
	There is no common stock in the partnerships.
	Hence the last option also incorrect.