MC Qu. 115 Bloom and Plant organize a partnership...

Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $1,450 cash, $5,800 equipment and a $1,100 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $6,150. These amounts are the values agreed on by both partners. The journal entry to record Bloom's investment is:

Multiple Choice

Debit Cash $1,450; debit Equipment $5,800; credit Note Payable $1,100; credit Bloom, Capital $6,150.

Debit Cash $6,150; credit Bloom, Capital $6,150.

Debit Cash $1,450; debit Equipment $5,800; credit Bloom, Capital $7,400.

Debit Cash $1,450; debit Equipment $4,700; credit Bloom, Capital $6,150.

Debit Bloom, Capital $8,350; credit Common Stock $8,350.