Answer:
a. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
Explanation:
Given options:
a. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Cash $30,000.
b. Debit Masters, Capital $14,000; debit Hardy, Capital $14,000; credit Cash $28,000.
c. Debit Masters, Capital $15,000; debit Hardy, Capital $15,000; credit Rowen, Capital $2,000; credit Cash $28,000.
d. Debit Cash $28,000; debit Rowen, Capital $2,000; credit Masters, Capital $15,000; credit Hardy, Capital $15,000.
e. Debit Masters, Capital $9,334; debit Hardy, Capital $9,333; debit Rowen, Capital $9,333; credit Cash $28,000.
The journal entry to record the final distribution is shown below:
Master capital Dr $15,000
Hardy capital Dr $15,000
To Cash $30,000
(Being the final distribution is recorded)
Here debited both capital as it reduced the stockholder equity also it decreased the assets
Hence, the correct option is a.
