Question
1/ Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $700 cash, $1,400 equipment and a $1,200 note payable reflecting
1/ Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $700 cash, $1,400 equipment and a $1,200 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $900. These amounts are the values agreed on by both partners. The journal entry to record Bloom's investment is:
Multiple Choice
Debit Cash $700; debit Equipment $1,400; credit Note Payable $1,200; credit Bloom, Capital $900.
Debit Cash $900; credit Bloom, Capital $900.
Debit Cash $700; debit Equipment $1,400; credit Bloom, Capital $2,800.
Debit Cash $700; debit Equipment $200; credit Bloom, Capital $900.
Debit Bloom, Capital $3,300; credit Common Stock $3,300.
2/
The following information is available regarding Grace Smit's capital account in Enterprise Consulting Group, a general partnership, for a recent year:
Beginning of the year balance | $ | 44,000 |
Share of partnership income | $ | 14,000 |
Withdrawals made during the year | $ | 8,200 |
What is Smit's partner return on equity during the year in question?
Multiple Choice
29.9%
44.6%
28.1%
12.4%
13.2%
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