5/ Fontaine and Monroe are forming a partnership. Fontaine invests a building that has a market value of $356,000; the partnership assumes responsibility for a $128,000 note secured by a mortgage on the property. Monroe invests $103,000 in cash and equipment that has a market value of $78,000. For the partnership, the amounts recorded for total assets and for total capital account are:

Multiple Choice

Total assets $409,000; total capital $537,000.

Total assets $409,000; total capital $409,000.

Total assets $665,000; total capital $665,000.

Total assets $537,000; total capital $537,000.

Total assets $537,000; total capital $409,000.

6/ Peters, Chong, and Aaron are dissolving their partnership. Their partnership agreement allocates each partner an equal share of all income and losses. The current period's ending capital account balances are Peters, $66,000; Chong, $54,000; and Aaron, $(12,000). After all assets are sold and liabilities are paid, there is $108,000 in cash to be distributed. Aaron is unable to pay the deficiency. The journal entry to record the distribution should be:

Multiple Choice

Debit Cash $108,000, debit Aaron, Capital $12,000, credit Peters, Capital $66,000, credit Chong, Capital $54,000.

Debit Peters, Capital $66,000; debit Chong, Capital $42,000; credit Cash $108,000.

Debit Cash $108,000; credit Peters, Capital $36,000; credit Chong, Capital $36,000.

Debit Peters, Capital $66,000; debit Chong, Capital $54,000; credit Cash $120,000.

Debit Peters, Capital $60,000; debit Chong, Capital $48,000; credit Cash $108,000.

7/ Barber and Atkins are partners in an accounting firm and share net income and loss equally. Barber's beginning partnership capital balance for the current year is $306,000, and Atkins' beginning partnership capital balance for the current year is $350,000. The partnership had net income of $130,000 for the year. Barber withdrew $75,000 during the year and Atkins withdrew $118,000. What is Barber's return on equity?

Multiple Choice

21.6%

10.8%

21.2%

22.0%

20.1%

8/ Cox, North, and Lee form a partnership. Cox contributes $195,000, North contributes $162,500, and Lee contributes $292,500. Their partnership agreement calls for a 6% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $162,000 for its first year, what amount of income is credited to North's capital account?

Multiple Choice

$54,000.

$50,750.

$52,700.

$41,000.

$58,550.