1/ Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $700 cash, $1,400 equipment and a $1,200 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $900. These amounts are the values agreed on by both partners. The journal entry to record Bloom's investment is:

Multiple Choice

Debit Cash $700; debit Equipment $1,400; credit Note Payable $1,200; credit Bloom, Capital $900.

Debit Cash $900; credit Bloom, Capital $900.

Debit Cash $700; debit Equipment $1,400; credit Bloom, Capital $2,800.

Debit Cash $700; debit Equipment $200; credit Bloom, Capital $900.

Debit Bloom, Capital $3,300; credit Common Stock $3,300.

2/

The following information is available regarding Grace Smit's capital account in Enterprise Consulting Group, a general partnership, for a recent year:

Beginning of the year balance	$	44,000
Share of partnership income	$	14,000
Withdrawals made during the year	$	8,200

What is Smit's partner return on equity during the year in question?

Multiple Choice

29.9%

44.6%

28.1%

12.4%

13.2%