In liquidation of Peterson, Laney and Howell Partnership, balances prior to the distribution of cash to the partners are: Cash $900,000; Peterson, Capital $420,000; Laney, Capital $390,000, and Howell, Capital $90,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Peterson?

a.

$450,000

b.

$375,000

c.

$420,000

d.

$408,750

2.

Partners Gary and Elaine have agreed to share profits and losses in an 80:20 ratio respectively, after Gary is allowed a salary allowance of $30,000 and Elaine is allowed a salary allowance of $15,000. If the partnership had net income of $30,000 for 2017, Elaines share of the income would be

a.

$3,000

b.

$12,000

c.

$15,000

d.

$18,000

3.

Nate is investing in a partnership with Deidre. Nate contributes as part of his initial investment, Accounts Receivable of $60,000; an Allowance for Doubtful Accounts of $9,000; and $6,000 cash. The entry that the partnership makes to record Nates initial contribution includes a

a.

Debit to Accounts Receivable for $51,000

b.

Credit to Nate, Capital for $66,000

c.

Debit to Allowance for Doubtful Accounts for $9,000

d.

Credit to Nate, Capital for $57,000

4.

Jo and Nee are partners have partnership capital account balances of $360,000 and $270,000, respectively and share profits and losses equally. Lee is admitted to the partnership by investing $150,000 for a one-fourth ownership interest. The balance of Nee's Capital account after Lee is admitted is

a.

$195,000

b.

$270,000

c.

$292,500

d.

$247,500

5.

Arab American University sells 5,000 season basketball tickets at $100 each for its 5- game home schedule. The entry for revenue earned by TWO home games is:

a.

Dr. Unearned ticket revenue $300,000. Cr. Ticket revenue $300,000

b.

Dr. Unearned ticket revenue $200,000.Cr. Ticket revenue$ 200,000

c.

Dr. Unearned ticket revenue $500,000. Cr. Ticket revenue $500,000

d.

Dr. Ticket revenue $500,000. Cr. Unearned ticket revenue$ 500,000