1-The journal entry required to transfer capital of Partners A and B to Partner C would include

a- a debit to Partner C, Capital.

b- a credit to Partner C, Capital.

c- credits to Partner A, Capital, and Partner B, Capital.

d- None of these choices are correct.

2- On January 1, Johnson invested $105,000 and Tyler invested $210,000 in a newly formed partnership. They agreed to salary allowances of $60,000 per year to Johnson and $40,000 per year to Tyler, plus an interest allowance of 10% based on the partners' capital balances on January 1. Any remaining income (loss) is to be shared equally. When net income is $105,000 for the year, the allocation of income to the partners is _____.

a- $70,500 to Johnson; $61,000 to Tyler

b- $52,500 to Johnson; $52,500 to Tyler

c- $57,250 to Johnson; $47,750 to Tyler

d- None of these choices are correct.

3- Revenue per employee is computed as

a- revenue divided by the number of employees.

b- net income divided by the number of partners.

c- revenue divided by total assets.

d- None of these choices are correct.

4- Jenkins, CPAs earned $5,000,000 during the year using 20 employees. Jenkins' total assets were $9,000,000. The revenue per employee for the year was

a- $250,000.

b- $100,000.

c- $450,000.

d- None of these choices are correct.