Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

1. After one year of operation of Smith & Kline partnership, Smith's capital account contains balance of $46,000 and Kline's capital account contains $54,000. Each partner originally invested $40,000 in firm. Partnership agreement gives for yearly salary allowances of $12,000 to Smith and $15,000 to Kline, with any balance to be shared equally. There were no extra investments during the year, and no withdrawals were made except for stipulated salary allowances. net income of the partnership should have been:

a. $ 27,000
b. $ 40,000
c. $ 45,000
d. $ 47,000
e. $100,000

2. J and K have partnership capital balances of $10,000 and $6,000, respectively. K decides to sell his interest to Z for $8,000, after receiving approval of J. Partnership entry to record this transaction is:

 

a Cash 8,000
  Z, Capital 8,000
b K, Capital 6,000
  Z, Capital 6,000
c K, Capital 8,000
  Z, Capital 8,000
d K, Capital 6,000
  J, Capital 2,000
  Z, Capital 8,000

3. Partners A, B, and C share profits and losses equally and have capital balances of $10,000, $20,000, and $30,000, respectively. B wants to withdraw from partnership, and has agreed to accept $15,000 from partnership for her interest. After this transaction, capital balance of C will:

a. Decrease to $27,500.
b. Increase to $32,500.
c. Increase to $35,000.
d. Remain unchanged.

4. Partnership recorded following journal entry:

a. Acceptance of new partner who invests $70,000 and receives a $20,000 bonus.
b. Withdrawal of partner who pays a $ 10,000 bonus to each of the other partners.
c. Addition of partner who pays a bonus to each of the other partners.
d. Additional investment into the partnership by Tanner and Jackson.
e. Withdrawal of $ 10,000 each by Tanner and Jackson upon the admission of a new partner.

5. Common stockholders have right:

a. To receive prescribed dividends.
b. To receive dividends before any dividends are paid to preferred stockholders.
c. To vote on many corporate matters.
d. To convert their shares into a stipulated number of preferred shares.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M921817

Have any Question? 


Related Questions in Accounting Basics

1 which of the following would definitely improve both

1. Which of the following would definitely improve both gross profit as reported in the Income Statement and gross profit margin (assuming cost price per unit stays the same)? A. Selling more units at a higher selling pr ...

Case title the website launchyour company meddevice inc has

Case Title: The Website Launch Your Company, MedDevice, Inc., has just received FDA 510(k) clearance of its new, cutting edge medical device which paves the way for the official product launch in a few short months. Your ...

Problem 3-2 lo 2 simple equity method adjustments

Problem 3-2 (LO 2) Simple equity method adjustments, consolidated worksheet. On January 1, 2015, Paro Company purchases 80% of the common stock of Solar Company for $320,000. Solar has common stock, other paid-in capital ...

Choose any one of the following topic and express your

Choose any one of the following topic and express your views on the same: Which areas of Agriculture, Food and Animal feed would you focus for syndicated research and why? OR What would it really take to feed the growing ...

Valley care medical center expects projects x and y to

Valley Care Medical Center expects Projects X and Y to generate the following cash flows:   Givens (in '000s) Years                  0 1 2 3 4 5 1 Initial investment                              ($7,500)       2 Net oper ...

A tomato farmer with a very large farm of approximately

A tomato farmer with a very large farm of approximately 2200 acres had heard about a new type of rather expensive fertilizer which would supposedly significantly increase his production. The frugal farmer wanted to test ...

Discussionpart 1 please respond the following question no

Discussion Part 1 please respond the following question no less then 350 words (original work, no plagiarism, 1 reference) "earnings-based valuation" please respond to the following: • Create an argument supporting that ...

Dq1respond to the ethics discussion case at the end of

DQ1 Respond to the Ethics Discussion Case at the end of chapter 5 in the textbook. Dan owns a successful sports bar in downtown Providence. The state is considering legislation that would restrict the sale of alcohol in ...

Question 1 tonys textile company sells shirts for men and

Question 1: Tony's Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows: Men's Boy's Selling Price $28.80 Selling Price $24.00 Variable Cost $20.40 Va ...

Accounting anonymousabsorption and variable costing please

Accounting Anonymous Absorption and Variable Costing: Please respond to one of the following: Option 1 Create a situation for determining performance evaluations and bonuses where absorption-costing operating income is u ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro