Identify the amount would be recorded for the building and Partner S’ capital account.

Question

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Answer 1

Question

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

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Students have asked these similar questions

Stokely and Leder are forming a partnership. Stokely invests in a building that has a market value of $250,000; and the partnership assumes responsibility for a $50,000 note secured by a mortgage on that building. Leder invests $100,000 cash. For the partnership, the amounts recorded for the building and for Stokely’s capital account are: a. Building, $250,000; Stokely, Capital, $250,000. b. Building, $200,000; Stokely, Capital, $200,000. c. Building, $200,000; Stokely, Capital, $100,000. d. Building, $200,000; Stokely, Capital, $250,000. e. Building, $250,000; Stokely, Capital, $200,000.

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $330,0003; the partnership assumes responsibility for a $115,000 note secured by a mortgage on the property. Monroe invests $90,000 in cash and equipment that has a market value of $65,000. For the partnership, the amounts recorded for total assets and for total capital account are: Multiple Choice Total assets $485,000; total capital $370,000. Total assets $370,000; total capital $370,000. Total assets $485,000; total capital $485,000. Total assets $370,000; total capital $485,000. Total assets $600,000; total capital $600,000.

Barbara Ripley and Fred Nichols decide to organize the ALL-Star partnership. Ripley invests $15,000 cash, and Nichols contributes $10,000 cash and equipment having a book value of $3,500.Prepare the entry to record Nichols’s investment in the partnership, assuming the equipment has a fair value of $4,000. What is the account title and explanation? what is debit? what is credit?

Answer 2

Question

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

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Answer 3

Question

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

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Answer 5

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

Answer 6

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

Answer 7

Chapter 12, Problem 1MCQ

To determine

Identify the amount would be recorded for the building and Partner S’ capital account.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

e. Building, $250,000; Stokely Capital, $200,000.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Assets:

These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.

Capital:

The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.

Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.

The amount invested by Partner S in the building is $250,000.
Calculate the amount of S’ capital:

S's Capital account=(Market value of the building−Liabilities)=($250,000−$50,000)=$200,000

Thus, the amount of building is $250,000 and S’s capital is $200,000.

As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.

Answer 12

Conclusion

Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.

Answer 13

Ch. 12 - Prob. 1MCQ Ch. 12 - Prob. 2MCQ Ch. 12 - Prob. 4MCQ Ch. 12 - Prob. 5MCQ Ch. 12 - Prob. 3MCQ Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ

Identify the amount would be recorded for the building and Partner S’ capital account.

Identify the amount would be recorded for the building and Partner S’ capital account.

Answer to Problem 1MCQ

Explanation of Solution

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Chapter 12 Solutions