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

The trial balance before adjustment for sheffield company

The trial balance before adjustment for Sheffield Company shows the following balances.   Dr. Cr. Accounts Receivable $84,800 Allowance for Doubtful Accounts 2,420 Sales Revenue   $434,200 Using the data above, give the ...

Accountingnorthwest fur co started 2016 with 114000 of

Accounting Northwest Fur Co. started 2016 with $114,000 of merchandise inventory on hand. During 2016, $410,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases ...

Final paperwrite a five- to seven-page financial statement

Final Paper Write a five- to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis, you will discuss the financial healt ...

Your city has decided to build a new library the projected

Your city has decided to build a new library. The projected cost is $2 million. A bond issue for $1.2 million has been authorized, and the remainder is supposed to come from a contribution of $800,000 from the general fu ...

I on 1115 big co acquired 70 of little co for 350000 euros

I) On 1/1/15 Big Co. acquired 70% of Little Co. for 350,000 Euros (€). The fair value of the non-controlling interest on that date was €150,000. Little's book value on that date was €500,000, and all assets and liabiliti ...

Examine the following book-value balance sheet for

Examine the following book-value balance sheet for University Products, Inc. What is the capital structure of the firm on the basis of market values? The preferred stock currently sells for $15 per share and the common s ...

Writing assignment cash and receivablesassignment

Writing Assignment: Cash and Receivables Assignment Goals: - Obtain research experience in the Accounting Standards Codification - Obtain experience using SEC filings and the SEC website - Practice writing concise accoun ...

Accounting discussiona local movie theater owner explains

Accounting Discussion A local movie theater owner explains to you that ticket sales on weekends and evenings are strong, but attendance during the weekdays, Monday through Thursday, is poor. The owner proposes to offer a ...

Question 1if total liabilities are 1000 and total assets

Question 1 If total liabilities are $1,000 and total assets are $8,000, owner's equity must be A. $7,000. B. $3,000. C. $10,000. D. $13,000. Question 2 If total assets are $30,000 and total liabilities are $18,000, capit ...

International accounting1 tax jurisdiction and double

INTERNATIONAL ACCOUNTING 1. Tax Jurisdiction and Double Taxation Basis for taxation come from three common bases for taxation...they are source, citizenship, and residence. (Fill in the blanks below) a. The citizenship b ...

  • 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