FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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PLEASE ANSWER ALL THE FOLLOWING QUESTIONS

 

1. Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $42,000 is allocated to Seth?

a.$32,000
b.$23,000
c.$20,000
d.$0
 
2. Tucker and Titus are partners who share income in the ratio of 3:1 (3/4 to Tucker and 1/4 to Titus). Their capital balances are $31,500 and $61,000, respectively. The partnership generated net income of $48,000 for the year. What is Tucker's capital balance after closing the revenue and expense accounts to the capital accounts?
a.$67,500
b.$81,000
c.$40,500
d.$54,000
 
3. Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remaining income (loss) equally. How much of the net loss of $(6,000) is allocated to Yolanda?
a.$(3,000)
b.$0
c.$(5,000)
d.$(1,000)
 
4. Xavier and Yolanda have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $38,000 and $28,000, respectively; and the remainder to be divided equally. How much of the net income of $77,000 is allocated to Xavier?
a.$43,000
b.$66,000
c.$36,000
d.$41,000
 
5. Tomas and Saturn are partners who share income in the ratio of 3:1 (3/4 to Tomas and 1/4 to Saturn). Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Saturn’s capital balance after closing the revenue and expense accounts to the capital accounts?
a.$127,500
b.$102,500
c.$112,500
d.$120,000
 
6. Patty and Paul are partners who share income in the ratio of 3:2 (3/5 to Patty and 2/5 to Paul). Their capital balances are $90,000 and $130,000, respectively, on January 1. The partnership generated net income of $40,000 for the year. What is Paul’s capital balance after closing the revenue and expense accounts to the capital accounts?
a.$164,000
b.$120,000
c.$160,000
d.$146,000
 
7. Hannah Johnson contributed equipment, inventory, and $59,900 cash to a partnership. The equipment had a book value of $25,300 and a market value of $35,300. The inventory had a book value of $58,200 but only had a market value of $13,400 due to obsolescence. The partnership also assumed a $13,300 note payable owed by Hannah that was originally used to purchase the equipment.

What amount should be recorded to Hannah's capital account?

a.$95,300
b.$130,100
c.$153,400
d.$121,900
 
8. Paradise Architects had total revenue of $5,400,000 and revenue per employee of $200,000 in 20Y1. In 20Y2, total revenue increased to $5,700,000 and the number of employees expanded to 30. Did employee efficiency increase or decrease with the expansion, and by how much?
a.decreased by $100,000
b.decreased by $10,000
c.increased by $10,000
d.increased by $300,000
 
Please Answer all 8 questions correctly. Thank You
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