Question
24. At the end of December 2010, Rod Clarke, a partner in Boyde-Clarke Company, had a balance in his drawings account of $18,000. Rod's capital
| 24. | At the end of December 2010, Rod Clarke, a partner in Boyde-Clarke Company, had a balance in his drawings account of $18,000. Rod's capital account at the beginning of 2010 was $80,000. $5,000 of partnership profit was allocated to Rod in 2010. The entry to close Rod's drawings account at the end of 2010 would include a | |
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| A) | debit to Income Summary for $18,000. |
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| B) | credit to Clarke, Capital for $13,000. |
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| C) | debit to Clarke, Capital for $18,000. |
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| D) | credit to Clarke, Capital for $5,000. |
| 25. | The partnership of Ezekiel and Gibbons reports profit of $30,000. The partners share equally in profit and losses. The entry to record the partners' share of profit will include a | |
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| A) | credit to Income Summary for $30,000. |
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| B) | credit to Ezekiel, Capital for $15,000. |
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| C) | debit to Gibbons, Capital for $15,000. |
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| D) | credit to Ezekiel, Drawings for $15,000. |
| 26. | Ms. Drew, Ms Fraser and Ms Percy had a 1:2:3 partnership split on profit in their partnership. In 2011, the partnership had a profit of $150,000. How much would Ms. Drew receive as her share of the profit? |
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| A) $15,000 B) $50,000 C) $75,000 D) $25,000 |
| 27. | Partners A, B, and C have capital account balances of $60,000 each. The profit and loss ratio is 5:2:3 respectively. In the process of liquidating the partnership, noncash assets with a carrying amount of $50,000 are sold for $20,000. The balance of Partner B's Capital account after the sale is |
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| A) $45,000. B) $51,000. C) $54,000. D) $66,000. |
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