Question
All of the following are characteristics of partnerships except: a. Limited liability b. Mutual agency c. Co-ownership of property d. Limited life 2. If $120,000
All of the following are characteristics of partnerships except:
a.
Limited liability
b.
Mutual agency
c.
Co-ownership of property
d.
Limited life
2.
If $120,000 is collected in advance on October 1 for 6-month magazine subscriptions, the amount of UNEARNED SUBSCRIPTION REVENUE by November 30 is:
a.
$40,000
b.
$80,000
c.
$20,000
d.
$120,000
3.
The pipes company at 31/12/2019 has cash $250,000, non-cash assets $750,000, liabilities $310,000, and the following capital balances: Samar $340,000 and Qatar $350,000. The Firm is liquidated, and $700,000 in cash is received for the non-cash assets, Samar & Qatar income ratios 65%and 35% respectively. The journal entry for the sale of non-cash assets is:
a.
Debit Cash 700,000 and credit both Realization loss 50,000 and Non-cash assets 750,000
b.
Debit Cash 750,000 and credit both Non-cash assets 700,000 and Realization gain 50,000
c.
Debit Cash 950,000 and credit both Non-cash assets 750,000 and Realization gain 200,000
d.
Debit both Cash 250,000 and Realization loss 500,000 and credit Non-cash assets 750,000
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