Vince, Mike, and Emily are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Vince, $18,000, Mike, $11,000, Emily, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $23,000 in cash to be distributed. Emily pays $6,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Vince, Capital 27,000
Mike, Capital 27,000
Emily, Capital 27,000
Cash 23,000
Cash 23,000
Emily, Capital 6,000
Vince, Capital 18,000
Mike, Capital 11,000
Vince, Capital 18,000
Mike, Capital 11,000
Emily, Capital 6,000
Cash 23,000
Vince, Capital 18,000
Mike, Capital 11,000
Cash 29,000
Vince, Capital 26,000
Mike, Capital 26,000
2.
Groh and Jackson are partners. Groh's capital balance in the partnership is $67,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 10% interest. Block will invest $47,000 in the partnership. The bonus that is granted to Groh and Jackson equals:
$28,600 each.
28,800 to Groh; $28,600 to Jackson.
$28,800 each
$14,400 each
$0, because Groh and Jackson actually grant a bonus to Block.
3.
Groh and Jackson are partners. $Groh's capital balance in the partnership is $69,000, and Jackson's capital balance $71,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $34,800 in the partnership. The bonus that is granted to Block equals:
$8,900
$4,450
$8,700
$11,600
$0, because Block must actually grant a bonus to Groh and Jackson
4.
Rice, Heburn, and Dimarco formed a partnership with Rice contributing $77,000, Heburn contributing $55,000 and Dimarco contributing $41,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $89,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Dimarco's capital account? (Do not round the intermediate answers)
$28,295
$39,613
$21,092
$89,000
$77,000
5.
Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $54,000, and her ending partnership capital balance for the current year is $60,000. Her share of this year's partnership income was $5,720. What is her partner return on equity (rounded)?
9.53%
10.04%
10.59%
1.05%
9.97%
6.
B.Peter contributed $18,000 in cash plus office equipment valued at $7,000 to the BP Partnership. The journal entry to record the transaction for the partnership is:
Cash 18000
Office Equipment 7000
Common Stock 25000
Cash 18000
Office Equipment 7000
B.Peter, Capital 25000
BP Partnership 25000
B.Peter, Capital 25000
B.Peter, Capital 25000
BP Partnership, Capital 25000
Cash 18000
Office Equipment 7000
BP Partnership 25000
7. A partnership recorded the following journal entry:
Cash 70,000
M.Ken, Capital 9,000
Eric, Capital 9,000
L.Farrell, Capital 88,000
This entry reflects:
Withdrawal of $9,000 each by M.Ken and Eric upon the admission of a new partner.
Addition of a partner who pays a bonus to each of the other partners.
Acceptance of a new partner who invests $70,000 and receives a $18,000 bonus.
Additional investment into the partnership by M.Ken and Eric.
Withdrawal of a partner who pays a $9,000 bonus to each of the other partners.
8.
B.Tanner contributed $18,000 in cash plus office equipment valued at $6,000 to the BT Partnership. The journal entry to record the transaction for the partnership is:
Cash 18000
Office Equipment 6000
BT Partnership 24000
Cash 18000
Office Equipment 6000
B.Tanner, Capital 24000
Cash 18000
Office Equipment 6000
Common Stock 24000
B.Tanner, Capital 24000
BT Partnership, Capital 24000
BT Partnership 24000
B.Tanner, Capital 24000
9.
Rocky and Kingston formed a partnership with capital contributions of $600,000 and $500,000, respectively. Their partnership agreement calls for Rocky to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $193,000, then Rocky and Kingston's respective shares are:
$77,200; $115,800
$126,500; $66,500
$96,500; $96,500
$38,600; $154,400
$115,800; $77,200
10.
Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $55,000. During the year, David's share of the partnership income was $7,700, and David received $3,500 in distributions from the partnership. What is David's partner return on equity (rounded)?
15.0%
12.3%
6.7%
13.5%
14.0%
11.
Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $53,000, and her ending partnership capital balance for the current year is $64,000. Her share of this year's partnership income was $5,900. What is her partner return on equity (rounded)?
9.22%
10.09%
11.13%
1.86%
9.92%
12.
Rocky and Lawson are partners. Rocky's capital balance in the partnership is $69,000, and Lawson's capital balance $70,000. Rocky and Lawson have agreed to share equally in income or loss. Rocky and Lawson agree to accept Simon with a 15% interest. Simon will invest $45,000 in the partnership. The bonus that is granted to Rocky and Lawson equals:
$8,700 each
17,400 to Rocky; $17,200 to Lawson.
$17,400 each
$17,200 each.
$0, because Rocky and Lawson actually grant a bonus to Simon.
13.
Chen and Ben are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $21,000 note secured by a mortgage on that building. Ben will invest $80,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are:
Building, $69,000 and Chen, Capital, $80,000.
Building, $90,000 and Chen, Capital, $69,000.
Building, $90,000 and Chen, Capital, $90,000.
Building, $69,000 and Chen, Capital, $69,000.
Building, $21,000 and Chen, Capital, $90,000.
14.
Nguyen invested $400,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are:
$30,000 to Nguyen; $0 to Hansen.
$6,000 to Nguyen; $24,000 to Hansen.
$24,000 to Nguyen; $6,000 to Hansen.
$18,000 to Nguyen; $12,000 to Hansen.
$15,000 to Nguyen; $18,000 to Hansen.
15.
Helen, Rose, and Mark formed a partnership with Helen contributing $73,000, Rose contributing $55,000 and Mark contributing $39,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $94,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Mark's capital account? (Do not round the intermediate answers)
$73,000
$41,090
$21,952
$30,958
$94,000
16.
Nick invested $200,000 and Herald invested $100,000 in a partnership. They agreed to share incomes and losses by allowing a $20,000 per year salary allowance to Nick and a $60,000 per year salary allowance to Herald, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $20,000 in income are:
$12,000 to Nick; $8,000 to Herald.
$10,000 to Nick; $12,000 to Herald.
$16,000 to Nick; $4,000 to Herald.
$4,000 to Nick; $16,000 to Herald.
$-5,000 to Nick; $25,000 to Herald.
17.
Groh and Jackson are partners. $Groh's capital balance in the partnership is $66,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals:
$7,250
$3,625
$7,050
$11,667
$0, because Block must actually grant a bonus to Groh and Jackson
18.
McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $19,000, Harris, $17,000, Hussin, $(3,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $33,000 in cash to be distributed. Hussin pays $3,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
McCartney, Capital 34,500
Harris, Capital 34,500
Cash 33,000
McCartney, Capital 19,000
Harris, Capital 17,000
Cash 36,000
McCartney, Capital 35,000
Harris, Capital 35,000
Hussin, Capital 35,000
Cash 33,000
McCartney, Capital 19,000
Harris, Capital 17,000
Hussin, Capital 3,000
Cash 33,000
Cash 33,000
Hussin, Capital 3,000
McCartney, Capital 19,000
Harris, Capital 17,000
19.
Thomas and Mathew formed a partnership with capital contributions of $400,000 and $500,000, respectively. Their partnership agreement calls for Thomas to receive a $30,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $195,000, then Thomas and Mathew's respective shares are:
$107,500; $87,500
$97,500; $97,500
$39,000; $156,000
$78,000; $117,000
$117,000; $78,000
20
Reed Services is organized as a limited partnership, with Steve White as one of its partners. Steve's capital account began the year with a balance of $55,000. During the year, Steve's share of the partnership income was $6,600, and Steve received $4,100 in distributions from the partnership. What is Steve's partner return on equity (rounded)?
13.0%
10.7%
5.9%
11.7%
12.0%
21.
Meyers and Mastro are forming a partnership. Meyers is investing a building that has a market value of $85,000. However, the building carries a $25,000 mortgage that will be assumed by the partnership. Mastro is investing $15,000 cash. The balance of Meyers' Capital account will be:
$75,000
$60,000
$25,000
$85,000
$95,000
22.
Snell and Farrell are forming a partnership. Snell will invest a building that currently is being used by another business owned by Snell. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $16,500 note secured by a mortgage on that building. Farrell will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for Snell's Capital account are:
Building, $73,500 and Snell, Capital, $73,500.
Building, $90,000 and Snell, Capital, $90,000.
Building, $16,500 and Snell, Capital, $90,000.
Building, $90,000 and Snell, Capital, $73,500.
Building, $73,500 and Snell, Capital, $70,000.
23. A partnership recorded the following journal entry:
Cash 80,000
B.Tanner, Capital 12,000
Jackson, Capital 12,000
H.Rivera, Capital 104,000
This entry reflects:
Additional investment into the partnership by B.Tanner and Jackson.
Addition of a partner who pays a bonus to each of the other partners.
Withdrawal of a partner who pays a $12,000 bonus to each of the other partners.
Acceptance of a new partner who invests $80,000 and receives a $24,000 bonus.
Withdrawal of $12,000 each by B.Tanner and Jackson upon the admission of a new partner.
24.
Nguyen invested $200,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $40,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are:
$24,000 to Nguyen; $6,000 to Hansen.
$15,000 to Nguyen; $18,000 to Hansen.
$10,000 to Nguyen; $20,000 to Hansen.
$18,000 to Nguyen; $12,000 to Hansen.
$6,000 to Nguyen; $24,000 to Hansen.
25.
Chris and Lusy are forming a partnership. Chris is investing a building that has a market value of $89,000. However, the building carries a $26,000 mortgage that will be assumed by the partnership. Lusy is investing $12,000 cash. The balance of Chris' Capital account will be:
$75,000
$89,000
$103,000
$63,000
$26,000
CLICK HERE TO GET THE ANSWER !!!!
Friday 21 December 2012
Vince, Mike, and Emily are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Vince, $18,000, Mike, $11,000, Emily, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $23,000 in cash to be distributed. Emily pays $6,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
Vince, Capital 27,000
Mike, Capital 27,000
Emily, Capital 27,000
Cash 23,000
Cash 23,000
Emily, Capital 6,000
Vince, Capital 18,000
Mike, Capital 11,000
Vince, Capital 18,000
Mike, Capital 11,000
Emily, Capital 6,000
Cash 23,000
Vince, Capital 18,000
Mike, Capital 11,000
Cash 29,000
Vince, Capital 26,000
Mike, Capital 26,000
2.
Groh and Jackson are partners. Groh's capital balance in the partnership is $67,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 10% interest. Block will invest $47,000 in the partnership. The bonus that is granted to Groh and Jackson equals:
$28,600 each.
28,800 to Groh; $28,600 to Jackson.
$28,800 each
$14,400 each
$0, because Groh and Jackson actually grant a bonus to Block.
3.
Groh and Jackson are partners. $Groh's capital balance in the partnership is $69,000, and Jackson's capital balance $71,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $34,800 in the partnership. The bonus that is granted to Block equals:
$8,900
$4,450
$8,700
$11,600
$0, because Block must actually grant a bonus to Groh and Jackson
4.
Rice, Heburn, and Dimarco formed a partnership with Rice contributing $77,000, Heburn contributing $55,000 and Dimarco contributing $41,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $89,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Dimarco's capital account? (Do not round the intermediate answers)
$28,295
$39,613
$21,092
$89,000
$77,000
5.
Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $54,000, and her ending partnership capital balance for the current year is $60,000. Her share of this year's partnership income was $5,720. What is her partner return on equity (rounded)?
9.53%
10.04%
10.59%
1.05%
9.97%
6.
B.Peter contributed $18,000 in cash plus office equipment valued at $7,000 to the BP Partnership. The journal entry to record the transaction for the partnership is:
Cash 18000
Office Equipment 7000
Common Stock 25000
Cash 18000
Office Equipment 7000
B.Peter, Capital 25000
BP Partnership 25000
B.Peter, Capital 25000
B.Peter, Capital 25000
BP Partnership, Capital 25000
Cash 18000
Office Equipment 7000
BP Partnership 25000
7. A partnership recorded the following journal entry:
Cash 70,000
M.Ken, Capital 9,000
Eric, Capital 9,000
L.Farrell, Capital 88,000
This entry reflects:
Withdrawal of $9,000 each by M.Ken and Eric upon the admission of a new partner.
Addition of a partner who pays a bonus to each of the other partners.
Acceptance of a new partner who invests $70,000 and receives a $18,000 bonus.
Additional investment into the partnership by M.Ken and Eric.
Withdrawal of a partner who pays a $9,000 bonus to each of the other partners.
8.
B.Tanner contributed $18,000 in cash plus office equipment valued at $6,000 to the BT Partnership. The journal entry to record the transaction for the partnership is:
Cash 18000
Office Equipment 6000
BT Partnership 24000
Cash 18000
Office Equipment 6000
B.Tanner, Capital 24000
Cash 18000
Office Equipment 6000
Common Stock 24000
B.Tanner, Capital 24000
BT Partnership, Capital 24000
BT Partnership 24000
B.Tanner, Capital 24000
9.
Rocky and Kingston formed a partnership with capital contributions of $600,000 and $500,000, respectively. Their partnership agreement calls for Rocky to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $193,000, then Rocky and Kingston's respective shares are:
$77,200; $115,800
$126,500; $66,500
$96,500; $96,500
$38,600; $154,400
$115,800; $77,200
10.
Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $55,000. During the year, David's share of the partnership income was $7,700, and David received $3,500 in distributions from the partnership. What is David's partner return on equity (rounded)?
15.0%
12.3%
6.7%
13.5%
14.0%
11.
Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $53,000, and her ending partnership capital balance for the current year is $64,000. Her share of this year's partnership income was $5,900. What is her partner return on equity (rounded)?
9.22%
10.09%
11.13%
1.86%
9.92%
12.
Rocky and Lawson are partners. Rocky's capital balance in the partnership is $69,000, and Lawson's capital balance $70,000. Rocky and Lawson have agreed to share equally in income or loss. Rocky and Lawson agree to accept Simon with a 15% interest. Simon will invest $45,000 in the partnership. The bonus that is granted to Rocky and Lawson equals:
$8,700 each
17,400 to Rocky; $17,200 to Lawson.
$17,400 each
$17,200 each.
$0, because Rocky and Lawson actually grant a bonus to Simon.
13.
Chen and Ben are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $21,000 note secured by a mortgage on that building. Ben will invest $80,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are:
Building, $69,000 and Chen, Capital, $80,000.
Building, $90,000 and Chen, Capital, $69,000.
Building, $90,000 and Chen, Capital, $90,000.
Building, $69,000 and Chen, Capital, $69,000.
Building, $21,000 and Chen, Capital, $90,000.
14.
Nguyen invested $400,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are:
$30,000 to Nguyen; $0 to Hansen.
$6,000 to Nguyen; $24,000 to Hansen.
$24,000 to Nguyen; $6,000 to Hansen.
$18,000 to Nguyen; $12,000 to Hansen.
$15,000 to Nguyen; $18,000 to Hansen.
15.
Helen, Rose, and Mark formed a partnership with Helen contributing $73,000, Rose contributing $55,000 and Mark contributing $39,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $94,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Mark's capital account? (Do not round the intermediate answers)
$73,000
$41,090
$21,952
$30,958
$94,000
16.
Nick invested $200,000 and Herald invested $100,000 in a partnership. They agreed to share incomes and losses by allowing a $20,000 per year salary allowance to Nick and a $60,000 per year salary allowance to Herald, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $20,000 in income are:
$12,000 to Nick; $8,000 to Herald.
$10,000 to Nick; $12,000 to Herald.
$16,000 to Nick; $4,000 to Herald.
$4,000 to Nick; $16,000 to Herald.
$-5,000 to Nick; $25,000 to Herald.
17.
Groh and Jackson are partners. $Groh's capital balance in the partnership is $66,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals:
$7,250
$3,625
$7,050
$11,667
$0, because Block must actually grant a bonus to Groh and Jackson
18.
McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $19,000, Harris, $17,000, Hussin, $(3,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $33,000 in cash to be distributed. Hussin pays $3,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be:
McCartney, Capital 34,500
Harris, Capital 34,500
Cash 33,000
McCartney, Capital 19,000
Harris, Capital 17,000
Cash 36,000
McCartney, Capital 35,000
Harris, Capital 35,000
Hussin, Capital 35,000
Cash 33,000
McCartney, Capital 19,000
Harris, Capital 17,000
Hussin, Capital 3,000
Cash 33,000
Cash 33,000
Hussin, Capital 3,000
McCartney, Capital 19,000
Harris, Capital 17,000
19.
Thomas and Mathew formed a partnership with capital contributions of $400,000 and $500,000, respectively. Their partnership agreement calls for Thomas to receive a $30,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $195,000, then Thomas and Mathew's respective shares are:
$107,500; $87,500
$97,500; $97,500
$39,000; $156,000
$78,000; $117,000
$117,000; $78,000
20
Reed Services is organized as a limited partnership, with Steve White as one of its partners. Steve's capital account began the year with a balance of $55,000. During the year, Steve's share of the partnership income was $6,600, and Steve received $4,100 in distributions from the partnership. What is Steve's partner return on equity (rounded)?
13.0%
10.7%
5.9%
11.7%
12.0%
21.
Meyers and Mastro are forming a partnership. Meyers is investing a building that has a market value of $85,000. However, the building carries a $25,000 mortgage that will be assumed by the partnership. Mastro is investing $15,000 cash. The balance of Meyers' Capital account will be:
$75,000
$60,000
$25,000
$85,000
$95,000
22.
Snell and Farrell are forming a partnership. Snell will invest a building that currently is being used by another business owned by Snell. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $16,500 note secured by a mortgage on that building. Farrell will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for Snell's Capital account are:
Building, $73,500 and Snell, Capital, $73,500.
Building, $90,000 and Snell, Capital, $90,000.
Building, $16,500 and Snell, Capital, $90,000.
Building, $90,000 and Snell, Capital, $73,500.
Building, $73,500 and Snell, Capital, $70,000.
23. A partnership recorded the following journal entry:
Cash 80,000
B.Tanner, Capital 12,000
Jackson, Capital 12,000
H.Rivera, Capital 104,000
This entry reflects:
Additional investment into the partnership by B.Tanner and Jackson.
Addition of a partner who pays a bonus to each of the other partners.
Withdrawal of a partner who pays a $12,000 bonus to each of the other partners.
Acceptance of a new partner who invests $80,000 and receives a $24,000 bonus.
Withdrawal of $12,000 each by B.Tanner and Jackson upon the admission of a new partner.
24.
Nguyen invested $200,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $40,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are:
$24,000 to Nguyen; $6,000 to Hansen.
$15,000 to Nguyen; $18,000 to Hansen.
$10,000 to Nguyen; $20,000 to Hansen.
$18,000 to Nguyen; $12,000 to Hansen.
$6,000 to Nguyen; $24,000 to Hansen.
25.
Chris and Lusy are forming a partnership. Chris is investing a building that has a market value of $89,000. However, the building carries a $26,000 mortgage that will be assumed by the partnership. Lusy is investing $12,000 cash. The balance of Chris' Capital account will be:
$75,000
$89,000
$103,000
$63,000
$26,000
CLICK HERE TO GET THE ANSWER !!!! Vince, Mike, and Emily are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Vince, $18,000, Mike, $11,000, Emily, $(6,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $23,000 in cash to be distributed. Emily pays $6,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be: Vince, Capital 27,000 Mike, Capital 27,000 Emily, Capital 27,000 Cash 23,000 Cash 23,000 Emily, Capital 6,000 Vince, Capital 18,000 Mike, Capital 11,000 Vince, Capital 18,000 Mike, Capital 11,000 Emily, Capital 6,000 Cash 23,000 Vince, Capital 18,000 Mike, Capital 11,000 Cash 29,000 Vince, Capital 26,000 Mike, Capital 26,000 2. Groh and Jackson are partners. Groh's capital balance in the partnership is $67,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 10% interest. Block will invest $47,000 in the partnership. The bonus that is granted to Groh and Jackson equals: $28,600 each. 28,800 to Groh; $28,600 to Jackson. $28,800 each $14,400 each $0, because Groh and Jackson actually grant a bonus to Block. 3. Groh and Jackson are partners. $Groh's capital balance in the partnership is $69,000, and Jackson's capital balance $71,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $34,800 in the partnership. The bonus that is granted to Block equals: $8,900 $4,450 $8,700 $11,600 $0, because Block must actually grant a bonus to Groh and Jackson 4. Rice, Heburn, and Dimarco formed a partnership with Rice contributing $77,000, Heburn contributing $55,000 and Dimarco contributing $41,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $89,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Dimarco's capital account? (Do not round the intermediate answers) $28,295 $39,613 $21,092 $89,000 $77,000 5. Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $54,000, and her ending partnership capital balance for the current year is $60,000. Her share of this year's partnership income was $5,720. What is her partner return on equity (rounded)? 9.53% 10.04% 10.59% 1.05% 9.97% 6. B.Peter contributed $18,000 in cash plus office equipment valued at $7,000 to the BP Partnership. The journal entry to record the transaction for the partnership is: Cash 18000 Office Equipment 7000 Common Stock 25000 Cash 18000 Office Equipment 7000 B.Peter, Capital 25000 BP Partnership 25000 B.Peter, Capital 25000 B.Peter, Capital 25000 BP Partnership, Capital 25000 Cash 18000 Office Equipment 7000 BP Partnership 25000 7. A partnership recorded the following journal entry: Cash 70,000 M.Ken, Capital 9,000 Eric, Capital 9,000 L.Farrell, Capital 88,000 This entry reflects: Withdrawal of $9,000 each by M.Ken and Eric upon the admission of a new partner. Addition of a partner who pays a bonus to each of the other partners. Acceptance of a new partner who invests $70,000 and receives a $18,000 bonus. Additional investment into the partnership by M.Ken and Eric. Withdrawal of a partner who pays a $9,000 bonus to each of the other partners. 8. B.Tanner contributed $18,000 in cash plus office equipment valued at $6,000 to the BT Partnership. The journal entry to record the transaction for the partnership is: Cash 18000 Office Equipment 6000 BT Partnership 24000 Cash 18000 Office Equipment 6000 B.Tanner, Capital 24000 Cash 18000 Office Equipment 6000 Common Stock 24000 B.Tanner, Capital 24000 BT Partnership, Capital 24000 BT Partnership 24000 B.Tanner, Capital 24000 9. Rocky and Kingston formed a partnership with capital contributions of $600,000 and $500,000, respectively. Their partnership agreement calls for Rocky to receive a $50,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $193,000, then Rocky and Kingston's respective shares are: $77,200; $115,800 $126,500; $66,500 $96,500; $96,500 $38,600; $154,400 $115,800; $77,200 10. Web Services is organized as a limited partnership, with David White as one of its partners. David's capital account began the year with a balance of $55,000. During the year, David's share of the partnership income was $7,700, and David received $3,500 in distributions from the partnership. What is David's partner return on equity (rounded)? 15.0% 12.3% 6.7% 13.5% 14.0% 11. Renee Jackson is a partner in Sports Promoters. Her beginning partnership capital balance for the current year is $53,000, and her ending partnership capital balance for the current year is $64,000. Her share of this year's partnership income was $5,900. What is her partner return on equity (rounded)? 9.22% 10.09% 11.13% 1.86% 9.92% 12. Rocky and Lawson are partners. Rocky's capital balance in the partnership is $69,000, and Lawson's capital balance $70,000. Rocky and Lawson have agreed to share equally in income or loss. Rocky and Lawson agree to accept Simon with a 15% interest. Simon will invest $45,000 in the partnership. The bonus that is granted to Rocky and Lawson equals: $8,700 each 17,400 to Rocky; $17,200 to Lawson. $17,400 each $17,200 each. $0, because Rocky and Lawson actually grant a bonus to Simon. 13. Chen and Ben are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $21,000 note secured by a mortgage on that building. Ben will invest $80,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are: Building, $69,000 and Chen, Capital, $80,000. Building, $90,000 and Chen, Capital, $69,000. Building, $90,000 and Chen, Capital, $90,000. Building, $69,000 and Chen, Capital, $69,000. Building, $21,000 and Chen, Capital, $90,000. 14. Nguyen invested $400,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $60,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are: $30,000 to Nguyen; $0 to Hansen. $6,000 to Nguyen; $24,000 to Hansen. $24,000 to Nguyen; $6,000 to Hansen. $18,000 to Nguyen; $12,000 to Hansen. $15,000 to Nguyen; $18,000 to Hansen. 15. Helen, Rose, and Mark formed a partnership with Helen contributing $73,000, Rose contributing $55,000 and Mark contributing $39,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $94,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Mark's capital account? (Do not round the intermediate answers) $73,000 $41,090 $21,952 $30,958 $94,000 16. Nick invested $200,000 and Herald invested $100,000 in a partnership. They agreed to share incomes and losses by allowing a $20,000 per year salary allowance to Nick and a $60,000 per year salary allowance to Herald, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $20,000 in income are: $12,000 to Nick; $8,000 to Herald. $10,000 to Nick; $12,000 to Herald. $16,000 to Nick; $4,000 to Herald. $4,000 to Nick; $16,000 to Herald. $-5,000 to Nick; $25,000 to Herald. 17. Groh and Jackson are partners. $Groh's capital balance in the partnership is $66,000, and Jackson's capital balance $68,000. Groh and Jackson have agreed to share equally in income or loss. Groh and Jackson agree to accept Block with a 25% interest. Block will invest $35,000 in the partnership. The bonus that is granted to Block equals: $7,250 $3,625 $7,050 $11,667 $0, because Block must actually grant a bonus to Groh and Jackson 18. McCartney, Harris, and Hussin are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are McCartney, $19,000, Harris, $17,000, Hussin, $(3,000). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $33,000 in cash to be distributed. Hussin pays $3,000 to cover the deficiency in his account. The general journal entry to record the final distribution would be: McCartney, Capital 34,500 Harris, Capital 34,500 Cash 33,000 McCartney, Capital 19,000 Harris, Capital 17,000 Cash 36,000 McCartney, Capital 35,000 Harris, Capital 35,000 Hussin, Capital 35,000 Cash 33,000 McCartney, Capital 19,000 Harris, Capital 17,000 Hussin, Capital 3,000 Cash 33,000 Cash 33,000 Hussin, Capital 3,000 McCartney, Capital 19,000 Harris, Capital 17,000 19. Thomas and Mathew formed a partnership with capital contributions of $400,000 and $500,000, respectively. Their partnership agreement calls for Thomas to receive a $30,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $195,000, then Thomas and Mathew's respective shares are: $107,500; $87,500 $97,500; $97,500 $39,000; $156,000 $78,000; $117,000 $117,000; $78,000 20 Reed Services is organized as a limited partnership, with Steve White as one of its partners. Steve's capital account began the year with a balance of $55,000. During the year, Steve's share of the partnership income was $6,600, and Steve received $4,100 in distributions from the partnership. What is Steve's partner return on equity (rounded)? 13.0% 10.7% 5.9% 11.7% 12.0% 21. Meyers and Mastro are forming a partnership. Meyers is investing a building that has a market value of $85,000. However, the building carries a $25,000 mortgage that will be assumed by the partnership. Mastro is investing $15,000 cash. The balance of Meyers' Capital account will be: $75,000 $60,000 $25,000 $85,000 $95,000 22. Snell and Farrell are forming a partnership. Snell will invest a building that currently is being used by another business owned by Snell. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $16,500 note secured by a mortgage on that building. Farrell will invest $70,000 cash. For the partnership, the amounts to be recorded for the building and for Snell's Capital account are: Building, $73,500 and Snell, Capital, $73,500. Building, $90,000 and Snell, Capital, $90,000. Building, $16,500 and Snell, Capital, $90,000. Building, $90,000 and Snell, Capital, $73,500. Building, $73,500 and Snell, Capital, $70,000. 23. A partnership recorded the following journal entry: Cash 80,000 B.Tanner, Capital 12,000 Jackson, Capital 12,000 H.Rivera, Capital 104,000 This entry reflects: Additional investment into the partnership by B.Tanner and Jackson. Addition of a partner who pays a bonus to each of the other partners. Withdrawal of a partner who pays a $12,000 bonus to each of the other partners. Acceptance of a new partner who invests $80,000 and receives a $24,000 bonus. Withdrawal of $12,000 each by B.Tanner and Jackson upon the admission of a new partner. 24. Nguyen invested $200,000 and Hansen invested $300,000 in a partnership. They agreed to share incomes and losses by allowing a $40,000 per year salary allowance to Nguyen and a $40,000 per year salary allowance to Hansen, plus an interest allowance on the partners' beginning-year capital investments at 10%, with the balance to be shared equally. Under this agreement, the shares of the partners when the partnership earns a $30,000 in income are: $24,000 to Nguyen; $6,000 to Hansen. $15,000 to Nguyen; $18,000 to Hansen. $10,000 to Nguyen; $20,000 to Hansen. $18,000 to Nguyen; $12,000 to Hansen. $6,000 to Nguyen; $24,000 to Hansen. 25. Chris and Lusy are forming a partnership. Chris is investing a building that has a market value of $89,000. However, the building carries a $26,000 mortgage that will be assumed by the partnership. Lusy is investing $12,000 cash. The balance of Chris' Capital account will be: $75,000 $89,000 $103,000 $63,000 $26,000 CLICK HERE TO GET THE ANSWER !!!!
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