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8. Herman had a capital deficiency of $20,000 and Edwards had a credit balance of $150,000 in his capital account before the entry to record

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8. Herman had a capital deficiency of $20,000 and Edwards had a credit balance of $150,000 in his capital account before the entry to record final distribution of cash to partners. When the final distribution of cash is made the amount of cash Edwards should receive is a $65,000 b. $75,000 $110.000 d. $130,000 9 Wilma, Sanjeev, and Soo formed a partnership with income-sharing ratios of 50% 30%, and 20% respectively Cash of $120,000 was available after the partnership's assets were liquidated. Prior to the final distribution of cash, Wilma's capital balance was $80,000, Sanjeev's capital balance was $60,000, and Soo had a capital deficiency of $20,000 Wilma should receive how much of the $120.000 cash? a $70,000 b$67,500 G $52,500 d. $80.000 10. Discontinued operations appear in the income statement between a extraordinary items and the cumulative effect of changes in accounting principle b. the cumulative effect of changes in accounting principle and net income c gross profit and income tax expense. d. none of the above 11. Fancy Fashions bought machinery at a cost of $80,000 on January 1, 2000. On January 1, 2002, they decided to switch from the straight-line to the double declining- balance method of amortization. The machinery has no salvage value and an eight-year useful life. The cumulative offect of this change in accounting principle before income taxes is a $10,000. b. $20,000. G$35,000 d. $15,000. 12. Patterson Corporation issued 3,000, no par value common shares at $2 per share in exchange for a truck. The truck had a fair market value of $20,000. The entry to record this transaction includes a credit to Common Shares for a $14,000 b. $3,000 c. $20,000 d. $6,000 13. Modine Manufacturing declared an 8% stock dividend when it had 150,000, no par value common shares, issued at $3 per share. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to a. Retained Earnings for $36,000. b. Stock Dividends-Common for $144,000 C. Common Shares for $36,000. d. Common Stock Dividends Distributable for $144,000 14. As a result of a stock dividend, a. total shareholders' equity remains the same. b. total shareholders' equity increases. c. total shareholders' equity decreases. d. retained earnings remain unchanged

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