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30 7)J and K formed a partnership in which J contributes $60,000 in assets and agrees to devote half-time to the business. K contributed $40,000

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30 7)J and K formed a partnership in which J contributes $60,000 in assets and agrees to devote half-time to the business. K contributed $40,000 in assets and agrees to devote full-time to the partnership. If no other information is available, how will J and K share in the division of income? a) 3:2 c) 2:3 d) 1:2 48) When a partnership goes out of business,the winding up process is generally called: a) Liquidation b) Capitalization c) Realization d) Revaluation 49) A loss on realization occurs when: a) Assets are sold at their book value b) Assets are sold below their book value c) Assets are sold above their book value d) None of the above 50) The entry to record the issuance of 150 shares of $5 par common stock at par to an attorney in payment of legal fees for organizing the corporation includes a debit to a) Organizational Expenses b) Goodwill c) Common Stock d) Cash 51) The liability for a cash dividend is recorded on which of the following dates? The date of declaration The date of record The date of payment The date of announcement a) b) c) d) 52) When a cash dividend is declared, which of the following accounts would be debited? a) Retained Earnings b) Cash Dividends c) Stock Dividends d) Cash Dividends Payable 53) The net effect to a corporation of the declaration and payment of a cash dividend is to a) Decrease assets and decrease stockholders' equity b) Decrease liabilities and decrease stockholders' equity c) Increase stockholders' equity and decrease liabilities d) Increase assets and increase stockholders' equity 54) The effect of the declaration and issuance of the stock dividend when the share price is greater than par value is to: a) increase retained earnings, decrease common stock, and decrease paid-in capital b) decrease retained earnings, increase common stock, and increase paid-in capital c) increase retained earnings, decrease common stock, and increase paid-in capital d) decrease retained earnings, increase common stock, and decrease paid-in capital

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