1/

Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $800 cash, $2,300 equipment and a $400 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $3,500. These amounts are the values agreed on by both partners. The journal entry to record Plant's investment is:

Multiple Choice

Debit Cash $3,100; debit Note Payable $400; credit Plant, Capital $3,500.

Debit Cash $3,500; credit Note Payable $400, credit Plant, Capital $3,100.

Debit Bloom, Capital $3,500; credit Cash $3,500.

Debit Cash $3,900; credit Note Payable $400; credit Plant, Capital $3,900.

Debit Cash $3,500; credit Plant, Capital $3,500.

2/ Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $147,000 and Bowen's is $130,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $127,000 in the partnership. The amount credited to Kent's capital account is:

Multiple Choice

$127,000.

$130,000.

$152,800.

$121,200.

$106,500.