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The Journal Entry to Record the Initial Investment of Delta

Question 13

Multiple Choice

The journal entry to record the initial investment of Delta Ltd would be:


A) Debit Investment in Joint Venture $5,000,000, Credit Plant and Equipment $6,000,000, Debit Accumulated Depreciation $3,000,000, Credit Gain on Disposal of Property, Plant and Equipment $1,000,000, Credit Unearned Income $1,000,000.
B) Debit Cash $2,500,000, Debit Plant $2,500,000, Credit Plant and Equipment $6,000,000, Debit Accumulated Depreciation $3,000,000, Credit Gain on Disposal of Property, Plant and Equipment $1,000,000, Credit Unearned Income $1,000,000.
C) Debit Investment in Joint Venture $5,000,000 and Credit Plant Disposal account $5,000,000.
D) None of the above.

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