1/ Fellows and Marshall are partners in an accounting firm and share net income and loss equally. Fellows' beginning partnership capital balance for the current year is $304,000, and Marshall's beginning partnership capital balance for the current year is $135,000. The partnership had net income of $139,000 for the year. Fellows withdrew $32,000 during the year and Marshall withdrew $108,000. What is Marshall's return on equity?

Multiple Choice

51.5%

30.0%

72.0%

34.7%

60.0%

2/ The partnership agreement for Wilson, Pickett & Nelson, a general partnership, provided that profits be shared between the partners in the ratio of their financial contributions to the partnership. Wilson contributed $150,000, Pickett contributed $90,000 and Nelson contributed $30,000. In the partnership's first year of operation, it incurred a loss of $256,500. What amount of the partnership's loss, rounded to the nearest dollar, should be absorbed by Nelson?

Multiple Choice

$28,500

$85,500

$128,250

$64,125

$0

3/ Wallace, Simpson, and Prince are partners and share income and losses in a 2:6:2 ratio. The partnership's capital balances are Wallace, $72,800; Simpson, $84,000; and Prince, $81,200. Royal is admitted to the partnership on July 1 with a 15% equity and invests $42,000. The partnership would record the admission of Royal into the partnership as:

Multiple Choice

Debit Wallace, Capital $8,400; debit Simpson, Capital, $25,200; debit Prince, Capital $8,400; credit Royal, Capital $42,000.

Debit Cash $12,600; credit Prince, Capital $12,600.

Debit Cash $32,000; debit Wallace, Capital $2,000; debit Simpson, Capital, $6,000; debit Prince, Capital $2,000; credit Royal, Capital $42,000.

Debit Cash $42,000; credit Royal, Capital $42,000.

Debit Cash $42,000; credit Simpson, Capital $6,300, credit Royal, Capital $35,700.

4/

Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $368,000; the partnership assumes responsibility for a $134,000 note secured by a mortgage on the property. Monroe invests $109,000 in cash and equipment that has a market value of $84,000. For the partnership, the amounts recorded for Fontaine's Capital account and for Monroe's Capital account are:

Multiple Choice

Fontaine, Capital $234,000; Monroe, Capital $84,000.

Fontaine, Capital $234,000; Monroe, Capital $109,000.

Fontaine, Capital $368,000; Monroe, Capital $109,000.

Fontaine, Capital $368,000; Monroe, Capital $193,000.

Fontaine, Capital $234,000; Monroe, Capital $193,000.