You are the CPA for Mr. Passmore's sole proprietorship. Mr. Passmore tells you on day 1 that he obtained a commercial loan for $100,000, and he deposited the money into the bank account of the sole proprietorship. Also, on day 1 he tells you that he wants you to write him a check for $100,000.00 on day 2 because on day 2 he is going to buy $100,000.00 worth of equipment. So, on day 2 you prepare the check and sign it (you ave signature authority on the bank account which is a common practice in sole proprietorships - it's convenient). On day 3, Mr. Passmore returns with the equipment and the receipt for $100,000.00 on day 3 . What f anything, do you do on day 1 to the accounting records for the sole proprietorship? Multple Choice No journal entry needs to be recognized on the accounting records of the sole proprietorship because the sole proprietor and the sole proprietorship are two separate accounting entities and Mr. Passmore individually obtained the commercial loan. On the accounting records of the sole proprietorship, debit Cash $100,000 and credit Owner's Equity $100,000 because Mr. Passmore individually is liable on the note and then he contributed the $100,000 as an owner's contribution of capital. On the accounting records of the sole proprietorship, debit Cash $100,000 and credit Owner's Equity $100,000 because Mr. Passmore individually is liable on the note, and then he contributed the $100,000 as an owner's contribution of capital. On the accounting records of the sole proprietorship, debit Cash $100,000 and credit Notes Payable $100,000 because, since the law considers the sole proprietor and sole proprietorship as one legal entity, this liability must be recognized on the accounting records of the sole proprietorship. None of the other choices are correct