1/ Design Services is organized as a limited partnership, with Miko Toori as one of its partners. Miko's capital account began the year with a balance of $47,000. During the year, Miko's share of the partnership income was $9,500, and Miko received $6,000 in distributions from the partnership. What is Miko's partner return on equity?

Multiple Choice

18.8%

12.8%

20.2%

19.5%

12.3%

2/ Bloom and Plant organize a partnership on January 1. Bloom's initial investment consists of $800 cash, $2,300 equipment and a $400 note payable reflecting a bank loan for the new business. Plant's initial investment is cash of $3,500. These amounts are the values agreed on by both partners. The journal entry to record Plant's investment is:

Multiple Choice

Debit Cash $3,100; debit Note Payable $400; credit Plant, Capital $3,500.

Debit Cash $3,500; credit Note Payable $400, credit Plant, Capital $3,100.

Debit Bloom, Capital $3,500; credit Cash $3,500.

Debit Cash $3,900; credit Note Payable $400; credit Plant, Capital $3,900.

Debit Cash $3,500; credit Plant, Capital $3,500.

3/ Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $57,000, and Martin's capital balance $54,000. Hewlett and Martin have agreed to share equally in income or loss. The existing partners agree to accept Black with a 20% interest. Black will invest $36,400 in the partnership. The bonus that is granted to Hewlett and Martin equals:

Multiple Choice

$0, because Hewlett and Martin actually grant a bonus to Black.

$3,460 each.

1,869 to Hewlett; $1,820 to Martin.

$3,640 each.

$1,869 each.