Accounting Questions

14. A Partnership has the following Capital balances:
Jack, Capital 40,000
Jill, Capital 50,000
If Sally buys a one fourth (25%) partnership share for $60,000 cash, how much should Sally Capital be credited on the partnership books to record her admission to the partnership?
a) 50,000
b) 37,500

20. Sam, Bart, and Lex are dissolving their partnership. Their partnership agreement allocates each partner 1/3 of all income and losses. The current period's ending capital account balances are Sam, $45,000; Bart, $37,000; and Lex, $(5,000). After all assets are sold and liabilities are paid, there is $77,000 in cash to be distributed. Lex is unable to pay the deficiency. The journal entry to record the distribution should be:
a) Debit Sam, Capital $25,667; debit Bart, Capital $25,667; debit Lex, Capital $25,666; credit Cash $77,000.
Debit Sam, Capital $42,500; debit Bart, Capital $34,500; credit Cash $77,000.
b) Debit Sam, Capital $45,000; debit Bart, Capital $37,000; credit Lex, Capital $5,000; credit Cash $77,000.
c) Debit Cash $77,000, debit Lex, Capital $5,000, credit Sam, Capital $45,000, credit Bart, Capital $37,000.

18. After selling all assets and allocating all profits and losses, a partnership has the following:
Cash $18,000 A, Capital 12,000
B, Capital 6,000
The partners agree to split profits and losses equally.
If the company is liquidating the partnership, how much of the final cash distribution should be given to partner A?
a) 3,000
b) 21,000
c) 12,000

9. Bill Stewart contributes land valued at $10,000 and a building valued at $70,000 to form a partnership. The partnership also will pay the $50,000 Mortgage Payable on the building that Bill contributes. Bill Stewart, Capital should be credited for what amount to record his investment in the partnership?
a) 10,000
b) 80,000
c) 30,000
d) 130,000

14. A Partnership has the following Capital balances:
Jack, Capital 40,000
Jill, Capital 50,000
If Sally buys a one fourth (25%) partnership share for $60,000 cash, how much should Sally Capital be credited on the partnership books to record her admission to the partnership?
a) 50,000
b) 37,500

Answer: B...

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