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

Assignmentsongo dealers sells clothing and began trading

Assignment SONGO DEALERS sells clothing and began trading operations on 1 April 20X3. All amounts are paid by cheque, unless otherwise stated. The entity uses the perpetual inventory system and maintains a gross profit p ...

Discussionsustainable income and ratio analysis please

Discussion "Sustainable Income and Ratio Analysis" Please respond to the following: • Describe sustainable income and the importance of sustainable income in the evaluation of the income statement. Choose at least two it ...

Standard prices for medicineread the article magic pill

Standard Prices for Medicine Read the article, "Magic Pill, Magical Accounting." Based on the content presented in the article, describe some of the issues with not having an industry-wide standard price for a medicine. ...

1 several years ago courtney borrowed 100000 from the

1) Several years ago, Courtney borrowed $100,000 from the Friendly Local Bank and used it to buy an apartment building. Courtney has not been able to rent any of the apartments in the building and has not made any princi ...

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 ...

Landscaping service pricing analysisyou own a landscaping

Landscaping Service Pricing Analysis You own a landscaping company for residential properties. Your average cost for design and implement a standard landscape change per residential property is as follows Bushes @ $130 F ...

Taskas part of the planning process for your new accounting

TASK As part of the planning process for your new accounting information system, your manager has asked that you prepare flowcharts. This graphic presents the flow of information through the accounting cycles. • Using th ...

Illustrative question- shane brookson july 1 2015 shane

Illustrative Question- Shane Brooks On July 1, 2015, Shane Brooks established an interior decorating business, Premium Designs. During the month, the following transactions are completed: July  1. Transferred cash from a ...

Problem 1the following information relates to billy bobs

Problem 1 "The following information relates to Billy Bob's Donuts defined benefit pension plan during the current reporting year (All the amounts are in millions): Plan Assets at the beginning of the year $350 Expected ...

Accounting cycle project transaction practice set - bampg

Accounting Cycle Project Transaction Practice Set - B&G Music You have been hired as an accountant for B&G Co., a corporation performing diverse consulting services in Detroit, Michigan. B&G Co. prepares financial statem ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen