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13. Jones and Smith are partners with capital balances of $14,000 each (equal partners). Brown is admitted as a partner by investing $23,000 cash in

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13. Jones and Smith are partners with capital balances of $14,000 each (equal partners). Brown is admitted as a partner by investing $23,000 cash in the partnership. Brown is to have a 1/3 interest in the partnership equity and profits. The entry to admit Brown as a partner is: a. Cash.......... 23,000 Jones, Capital... 3,000 Smith, Capital... 3,000 Brown, Capital...... 17,000 *** I b. Cash............ Brown, Capital.... .......... 23,000 23,000 23.000 6,000 23,000 3,000 3,000 ***** c. Cash....... Goodwill.. Brown, Capital... Jones, Capital... Smith, Capital. d. Cash... Jones, Capital.. Smith, Capital.. Brown, Capital 23,000 7.666 7.666 7,667 e. None of the above. 14. The partnership of Mo and Curly has the following capital balances: Mo's is $16.000 and Curly's is $8.000. Curly sells his share of the partnership equity to Shemp for $12,000 cash (to be paid to Curly). Mo agrees to this, so the entry to record the sale is: a. Cash........... 12,000 Shemp. Capital... 12,000 b. Cash.... ... 12,000 Curly, Capital 8,000 Shemp, Capital... 20,000 C. Cash..... ... 12.000 Curly, Capital... Shemp. Capital. 12.000 Mo, Capital... 8.000 8,000 ... 8,000 8,000 d. Curly, Capital......... Shemp, Capital... e. Curly, Capital.. Mo, Capital Shemp. Capital... 8.000 4.000 12,000 Questions #15 and #16 refer to the following: White, Blue & Yellow are partners who share profits and losses in a 2:2:1 ratio. The capital balances of the partners are currently $30,000, $20.000, and $10,000, respectively. Assume White decides to withdraw from the partnership. 15. If White is paid $24,000 in cash (from partnership assets) for his share of partnership assets, Blue's and Yellow's capital balances after the withdrawal will be: a. $20,000 and $10,000. b. $23,000 and $13,000. C. $24,000 and $12,000. d. $30,000 and $20,000. 16. If White is paid $36.000 in cash (from partnership assets) for his share of partnership assets, Blue's and Yellow's capital balances after the withdrawal will be: a. $20.000 and $10.000. b. $23.000 and $13.000. c. $24.000 and $12.000. d. $ 16.000 and $8,000

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