Initial cash investments by partners are recorded as O a. a debit to Cash and a credit to Retained Earnings. O b. a debit to each individual partner's capital account and a credit to Cash. O c. a debit to Cash and a credit to each individual partner's capital account. O d. a debit to Retained Earnings and a credit to Cash. Net losses are not allocated between partners; only net income. O True O False George invests the following assets in a partnership: Office Equipment with a Fair Market Value of $20,000. Delivery Equipment with a Fair Market Value of $50,000. Cash of $15,000. He owes $20,000 on a promissory note for the delivery equipment. George's capital account would be credited for Oa. $105,000. O b. $65,000. C. $85,000. O d. $90,000. The partnership is dissolved if there is any change in the number of partners. O True 0 False Which of the following is the third step in the closing process for a partnership? O a. Close each partner's drawing account to the individual capital accounts. Ob. Close all revenues to Income Summary. Oc. Close Income Summary by allocating each partner's share of net income or loss to the individual capital accounts. Od. Close all expenses to Income Summary. If a new partner purchases an interest directly from existing partners, O a. the existing partners' capital accounts are debited and Cash is credited. O b. Cash is debited and Accounts Receivable is credited. Oc. Cash is debited and the new partner's capital account is credited. O d. the existing partners' capital accounts are debited and the new partner's capital account is credited