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> Hanna contributos $55,000 cash, land that she bought for $105,000, and a building that cost her $140,000 and has been amortized $70,000, to the

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> Hanna contributos $55,000 cash, land that she bought for $105,000, and a building that cost her $140,000 and has been amortized $70,000, to the newly formed partnership of H & B Company. The current market value of the building is $200,000 and has an outstanding mortgage of $100,000. The current market value of the land is $390,000 Barbara contributos $50,500 cash, equipment with a current market value of $80,000 with an outstanding noto payable of $15,000, and an automobile with a current market value of $30,000. Barbara originally paid $60,000 for the equipment, which has been amortized $20,000. The partners have agreed to share profits and losses equally The entry to record the investment by Hanna includes a debit to O A. building for $140,000 O B. building for $200,000 OC land for $195,000 OD. cash for $50,500 Spencer Ltd. has 25,000 shares of $4, cumulative preferred shares outstanding and 75,000 common shares. At the end of the current year, Spencer Lid declares a dividend of $400,000. Dividends have not been paid for the previous two years. How is the dividend allocated between preferred and common shareholders? O A. $200,000 to preferred, $200,000 to common O B. $0 to preferred, $400,000 to common OC. $300,000 to preferred, $100,000 to common OD. $100,000 to preferred, $300,000 to common > The shareholders' equity section of the balance sheet of Thomson Corporation is shown in the provided table. (Click the icon to view the shareholders' equity section.) The preferred shares are currently selling for $89.50 per share and the common shares are currently selling for $12.50 per share. The entry to record the sale of 8,000 repurchased shares that cost $12.50 per share for $13.50 per share includes a credit to O A. retained earnings for $8,000 O B. credit to common shares for $40,000 OC. credit to gain on sale of shares for $8,000 OD. credit to common shares for $100,000 Shareholders' equity -X $700.000 Contributed capital Preferred shares, $6 cumulative, 25,000 shares authorized, 7.000 shares issued Common shares, 1,000,000 shares authorized, 500,000 shares issued Total contributed capital Retained earnings Total shareholders' equity 2,500,000 3.200,000 990.000 $4,190,000 of 2 Print Done Wally, Willie, and Watson formed a partnership several years ago. Wally has decided to withdraw from the partnership. The current capital balances are: Wally, capital, $50,000; Willie, capital, $65,000; and Watson, capital, $100,000. Prior to the withdrawal of Wally, the partners agree to revalue some of the partnership assets. Inventory with a cost of $120,000 has a current market value of $125,000; land with a cost of $50,000 has a current market value of $125,000. Wally, Willie, and Watson share net income and losses in a 3:3:4 ratio. Wilie and Watson will share net income in a 3.4 ratio. What would the journal entry to record the revaluation of the partnership's assets include? O A. credit to Watson, Capital of $42,000 OB. debit to Land of $75,000 O c. debit to Inventory of $30,000 OD. All of these would be included. Equipment with a cost of $100.000 and accumulated amortization of $30,000 is contributed to a new partnership by Barnes. The current market value of the equipment is $05,000. The replacement value of the equipment is $125,000. The equipment would be recorded on the partnership books at O A $70,000 OB. $125,000 OC. $95,000 OD. the value agreed upon by all of the partners

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