Question
Tom Tylor & Dick Davidson go into business together as a partnership (named as Tom&Dick LLP), selling computer software through the internet.On January 1, they
Tom Tylor & Dick Davidson go into business together as a partnership (named as Tom&Dick LLP), selling computer software through the internet.On January 1, they each put in $6,000 as capital, and this goes into the Tom&Dick account at their local bank.They buy computer equipment for $10,000 (paid by cheque) and set up for business in Dick's dad's basement.At this point the accounting equation is:
assets: $12,000; liabilities: $0; equity: $12,000
assets: $8,000; liabilities: $0; equity: $8,000
None of the options is correct
assets: $2,000; liabilities: $10,000; equity: $8,000
assets: $10,000; liabilities: $0; equity: $10,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started