11. Help me selecting the right answer. Thank you John and Anne are partners. John has a capital balance of $48,000 and Anne has a capital balance of $35,000. John sells $13,000 of his ownership to Bailey.Which of the following is TRUE of the journal entry to admit Bailey?Cash will be debited for $13,000.Bailey, Capital will be credited for $13,000.John, Capital will be credited for $13,000.Bailey, Capital will be debited for $13,000.

The correct answer is: (B) Bailey, capital will be credited for $13,000.

John and Anne are partners. John has a capital balance of $48,000 and Anne has a capital balance of $35,000. John sells $13,000 of his ownership to Baile Which of the following is TRUE of the journal entry to admit Bailey? 000

John and Anne are partners. John has a capital balance of $48,000 and Anne has a capital balance of $35,000. John sells $13,000 of his ownership to Baile Which of the following is TRUE of the journal entry to admit Bailey? 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Explain why financial statement information has characteristics of a public good. Include a…

A: A public good is a product or service that is non-excludable and non-rivalrous. This means that once…

Q: Based on the following cash flows (t=0 to t=5), calculate the Precise(Exact) ERR. Assume the MARR is…

A: t = 0 receipt of $20,000. t=1 disbursement of $15,000. t=2 disbursement of $10,000. t=3 no cash…

Q: advantage of selecting a sample by cluster rather than by use of a table of random numbers is that…

A: Instead of selecting all the data from the sample the cluster sampling allow to break the data into…

Q: Mr. Yuson obtained a 20-year mortgage for PhP 2,200,000. If his monthly payment is PhP 18,500, how…

A: MORTGAGE Mortgage is a Type of Loan. Mortgage is an agreement between you and a lender that…

Q: Which of the following is not a characteristic of an effective responsibility accounting system? a)…

A: RESPONSIBLE ACCOUNTING SYSTEM Responsibility Accounting is a type of accounting in which some…

Q: Engines Done Right Co. is trying to establish the standard labor cost of a typical engine tune-up.…

A: The variance arises when there is the difference between actual costs and budgeted costs. The…

Q: On December 31, 2021, Ghani Catering discovered that one of its customers, Vince Suerty, had gone…

A: Journal entry is a primary entry that records the financial transactions initially. The transactions…

Q: June 6, 2022 Czarina borrowed Php10,000 to Cardo Lending Company that will mature on November 8,…

A: In order to calculate the time period between the maturity of loan the date of loan taken and the…

Q: walberg de alers, purchased goods for $38,700. Terms of the purchase were FOB shipping point, and…

A: Solution: Cost of inventory: Particulars Amount $…

Q: Better Health Company has two service departments distribution of each service department's efforts…

A: The cost represents the expenses incurred by the company on the production process of the company.…

Q: a. $2,000.

A: Solutions 1) The correct option is a) $2000 Detailed explanation are as fallows: Receipt of cash…

Q: After the third year of operations, a firm has an annual NOI of $575,000 with outstanding debt of:…

A: The question asked to compute the debt-service coverage ratio. Financial ratios: The financial…

Q: Ultimo Company operates three production departments as profit centers. The following information is…

A: The departmetal contribution to overhead is the amount contributed by the department to overhead…

Q: QUESTION 15 Cash Flow from Operations includes Income Statement information and changes in: O a.…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Beta Company's budgeted prices for direct materials, direct manufacturing labor, and direct…

A: The correct solution is: D. $36,500 U

Q: 5. An independent appraiser provides the following information on the value of a High Pressure Water…

A: The question is related to Impairment loss. Impairment loss is calculated with the help of following…

Q: The maturity value of a $802,000, 88 day, 10% note receivable is (two decimals):

A: Note receivable is the note which shows that a particular amount along with interest is due from a…

Q: Suppose that a bond has a face value of $200 000 and its maturity date is 10 years from now. The…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: When a defendant debtor in a lawsuit is said to be “judgement proof” it signifies Multiple…

A: Introduction When a court ruling demands debt payback, a person is said to be judgment proof if they…

Q: An employee earned $62,500 during the year working for an employer. The Federal Insurance…

A: Federal Unemployment Tax Act (FUTA): The federal unemployment tax is welfare scheme of a social…

Q: Assume that your bond has an interest rate of 10 percent when other bonds are paying 12 percent.…

A: IF OTHER BONDS ARE GIVING 12 % INTEREST AND OUR BOND IS GIVING 10 % Bonds are fixed-income…

Q: 28. On January 1, 2027, a contractor started a construction project for $1,350,000; estimated…

A: Construction costing is the process of accounting followed by businesses engaged in construction. It…

Q: 5. A business has the following budgeted financial data for next January February Production units…

A: Labor Costing - The overall expense incurred by employers to employ workers is represented by labor…

Q: Khemicool Ltd. manufactures a chemical using in the process two components: K1 and component K2. The…

A: Lets understand the basics. Material mix variance is a variance between the standard mix in which…

Q: Servicing business using non-conventional reporting of income has P600,000 service revenue. The cost…

A: Gross profit: The difference between the sales and the cost of goods sold is called gross income.…

Q: A business loan of PhP 650,000 is to be settled by paying PhP 29,994.20 monthly in 2 years. If the…

A: In terms of a borrower or lender, the outstanding balance is the sum that is still owed on a loan.…

Q: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine…

A: FOR POINT 1 JOURNAL ENTRIES No Date General Journal Debit ($) Credit ($) 1.…

Q: How do I journalize adjusting entries and closing entries using this information?

A: Journal entries are entered and recorded on the journal book in which the transactions have to be…

Q: Exercise 8-10 (Algo) Petty cash fund accounting LO P2 Palmona Company establishes a $140 petty cash…

A: Journal Entries is the primary step to record the transaction in the books of accounts. Increase in…

Q: King Company estimated that it would operate its manufacturing facilities at 800,000 direct labour…

A: Variable overhead spending variance states that in total variable overhead variance, the amount of…

Q: Joint Cost Allocation-Weighted Average Method Gary's Grooves Co. produces two types of carving…

A: Cost allocation is the process of identifying and allocating the cost between the departments of the…

Q: The cellular phone division of Stanton Company had budgeted sales of $800,000 and actual sales of…

A: Answer:- Variance meaning:- A variance is basically the difference between the budgeted and actual…

Q: nts in place of statements of individual companies or accounting for a business combination using…

A: Financial accounting - A specific form of accounting known as financial accounting comprises a…

Q: Jerome Company provided the following information for the month of December 2022: Balance per bank…

A: A bank reconciliation statement is prepared to reconcile the difference, if any, between the balance…

Q: C collected a note of P5,000 plus interest of P200. The asset of C is increased by a. P5,200 b.…

A: Solution.. Cash to be received by C will include a Principal amount and the interest amount.…

Q: f Sarah starts an RESP for her son Stuart when he is 2. How old will Stuart be when the CESG maximum…

A: REGS is Registered Education Saving Plan is special saving account for parents who wants to save…

Q: The board of directors of Mesa Verde Tool Company set the profit goal for calendar year 2016 at…

A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…

Q: eBook Pure lemonade Show Me How Joint Cost Allocation-Net Realizable Value Method Lily's Lemonade…

A: The net realizable value method is used in joint costing to allocate joint costs. First, calculate…

Q: ld Corp. uses the amortized cost method (effective interest method) when accounting for debt…

A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…

Q: May 2 Sold merchandise costing $420 to B. Facer for $630 cash, invoice number 5703. May 5 Purchased…

A: The sales journal is a prime entry book used to keep track for all the credit sales of the business.…

Q: Leslie who is single, finished graduate school this year and began repaying her student loan. The…

A: If the following criteria are met, the interest paid by an individual on a loan obtained for his or…

Q: A corporation purchases 10,000 shares of its own $20 par common stock for $35 per share, recording…

A: Stockholders' equity is the amount of a company's assets that remain in its possession after all…

Q: Alchor, Inc., had 450,000 shares of common stock issued and outstanding at January 1. On July 1, an…

A: Solution: Please fallow the answer below: Basic EPS = Earnings available for common shareholders’…

Q: Tonya (a single taxpayer) had the following items for last year: Salary $40,000 Short-term capital…

A: The sum of a person's earnings before tax and other deductions is their gross income. Salary,…

Q: The following individual taxpayers are subject to the graduated income tax rates of 20%-35%, except…

A: The question asked to find the correct option from the available option. Tax rates: Tax rate…

Q: The cost services is 75% of service income. If the gross profit is P50,000, how much is the service…

A: Gross profit: The difference between the sales and the cost of goods sold is called gross profit.…

Q: Great Inc.'s contribution margin ratio is 48% and its fixed monthly expenses are $36,000. Assuming…

A: Given Information as per Question Contribution Margin Ratio = 48% Fixed Monthly Expenses (or fixed…

Q: Using the following accounts and balances, prepare the "Stockholders' Equity' section of the balance…

A: Stockholders' equity is the section in the balance sheet which shows the holding of shareholders in…

Q: What is the appropriate term for how the company distributes a portion of its profits? How does this…

A: 1. Dividend: A dividend is the portion of a company’s profits that are distributed to its…

Q: In 2022, LeSean (age 60 and single) has earned Income of $3,600. He also has $35,800 of unearned…

A: Employer-sponsored program: The employer-sponsored program is the benefit plan for the employee…

Question

100%

11. Help me selecting the right answer. Thank you

John and Anne are partners. John has a capital balance of $48,000 and Anne has a capital balance of $35,000. John sells $13,000 of his ownership to Bailey.
Which of the following is TRUE of the journal entry to admit Bailey?
Cash will be debited for $13,000.
Bailey, Capital will be credited for $13,000.
John, Capital will be credited for $13,000.
Bailey, Capital will be debited for $13,000.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Winnie and Minnie form a partnership. Winnie contributed $5,000 cash and $20,000 in inventory. Minnie contributes $8,000 in cash and land with a current market value of $60,000. The land originally cost $30,000. Minnie also brings over a $20,000 liability to the partnership. Which of the following is correct? Select one: O a. Minnie, capital is credited for 68,000 b. Winnie, capital is debited for 25,000 c. Minnie, capital is credited for 48,000 O d. Winnie, capital is credited for $5,000
Jimmy, Johnny, and Joey are partners in the 3J Company sharing profits and losses equally. Joey has decided to leave the partnership. After all accounts have been updated, the capital balances of the partners are currently $90,000, $120,000, and $70,000, respectively. Refer to Table 12-8. Assume Joey takes $50,000 in cash and a promissory note for $20,000. The entry to record his with drawal includes a O A. O B. credit to Joey, Capital for $50,000 debit to Joey, Capital for $70,000 C. debit to Joey, Capital for $50,000 O D. credit to Joey, Capital for $70,000
Mansoor, Salim and Haitham are forming a partnership. Mansoor is transferring $150,000 of personal cash to the partnership. Salim owns land worth $55,000 and a small building worth $80,000 with market value $75,000, which he transfers to the partnership. Haitham transfers to the partnership cash of $9,000, Accounts receivable of $32,000 and equipment worth $19,000. The partnership expects to collect $27,000 of the accounts receivable. Instructions (a) Prepare the journal entries to record each of the partners’ investments.(b) What amount would be reported as total owners’ equity immediately after the investments?
schnedider and samuels are parnters with capital balances of 15,000 and 25,000 respectively. They share profits in a ration 2:1. Goroff is to be admitted to the partnership. He agrees to be admitted with a cash investment to give him 1/3 interest in the capital and profits of the business. The good will to be granted to Goroff should be valued at $6000. The required cash to cover Goroff's investment is:
the capital accounts of brock and ian have balances of $120,000 and $100,000, respectively. carla is to be admitted to the partnership. carla buys 25% of ian’s capital from ian for $20,000. no assets need to be revalued. as an example, enter dollar amounts in this format: 30000 (for 30,000) do not use dollar signs, commas, or decimal points! enter a hyphen if no amount is recorded in that column. otherwise, the system will count it wrong! (a) journalize the entry to record the admission of carla debit credit ian capital question blank 1 of 7 question blank 2 of 7 carla capital question blank 3 of 7 question blank 4 of 7 (b) what are the capital balanc
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $65,200 and $29,200, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $45,000. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership? a. $65,200 b. $29,200 c. $32,600 d. $45,000
We have the following facts: The three below meet on January 2, 2021 and decide the following will happen as one transaction (even though not all on the same day) Emily exchanges land for 100 shares of ABC Inc on January 7, 2021. She has a basis of $10,000 and FMV of $100,000 David transfers cash for 10 shares on January 13, 2021. His basis and FMV are both $10,000 On February 10, 2021, Ethan agrees to exchange services during the next year for 100 shares of stock. They all agree that the services will be worth $100,000 QUESTION: Does this qualify as a $351 transaction? O a. No, Ethan's services taint the whole thing O b. Yes at Emily but no to David (he was after Emily and so no control) and no to Ethan for services O c. Yes, the three met at one time and all agreed to create the entity. So part of a prearranged plan O d. Yes as to Emily as she had control immediately after her transaction e. Yes as to Emily and David as they transferred property
Gena and Bena decide to organize a partnership. Gena invests $35,000 cash, and accounts receivable of 20,000. Bena contributes $5,000 and inventory having a cost of $27,000. The partners agree that the fair value of the accounts receivable is 17,000 and the fair value of the inventory is $25,000. Instructions: Prepare the entry to record each partner's investment.
Ali and Fatima are partners whose capital balances are $400,000 and $300,000 and who share profits 3:2. Due to a shortage of cash, Ali and Fatima agree to admit Ahmed to the firm. Instructions: Prepare the journal entries required to record Ahmed’s admission under each of the following independent assumptions: Ahmed invests $200,000 for a 1/4 interest. The total firm capital is to be $900,000. Ahmed invests $300,000 for a 1/4 interest. Goodwill is to be recorded. Ahmed purchases a 1/4 interest in the firm, with 1/4 of the capital of each old partner transferred to the account of the new partner. Ahmed pays the partners cash of $250,000, which they divide between themselves
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $67,800 and $30,100, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $44,000. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?
Bobbi and Stuart are partners. The partnership capital of Bobbi is $43,200 and that of Stuart is $78,800. Bobbi sells his interest in the partnership to John for $60,000. The journal entry for the admission of John as a new partner would include a credit to
K. Decker, S. Rosen, and E. Toso are forming a partnership. Decker is transferring $50.600 of personal cash to the partnership. Rosen owns land worth $15,300 and a small building worth $77,500, which she transfers to the partnership. Toso transfers to the partnership cash of $11,800, accounts receivable of $32.500, and equipment worth $18,800. The partnership expects to collect $29,250 of the accounts receivable.. (a) Prepare the journal entries to record each of the partners' investments. (Credit account titles are automatically indented when amount is entered. Do not indent manually) Account Titles and Explanation (To record investment of Decker.) (To record investment of Rosen.) Debit Credit