Question
Michael is investing in a partnership with Monica. Michael's contribution as part of his initial investment is: Accounts Receivable $80,000, Allowance for Doubtful Accounts of
Michael is investing in a partnership with Monica. Michael's contribution as part of his initial investment is: Accounts Receivable $80,000, Allowance for Doubtful Accounts of $12,000, and Cash $15,000. Michael's initial contribution in the partnership has the following entry:
Question 1 options:
A. debit to Accounts Receivable for $78,000
B. credit to Michael, Capital $83,000
C. debit to Allowance for Doubtful Accounts for $12,000
D. credit to Michael, Capital $92,000
In the partnership formed by Felix and Cristy, he is investing a truck with a book value of $15,000 and a fair value of $12,000. Cristy is investing a building with a book value of $40,000 and a fair value of $55,000 with a mortgage of $20,000. Determine the amount that Cristy's capital account should be recorded at.
Question 2 options:
A. $28,000
B. $40,000
C. $55,000
D. $20,000
Cristy and Elizabeth are entering into a partnership. Cristy contributes equipment that originally cost $65,000, but now has a book value of $10,000 and a fair value of $14,000. Determine the entry that the partnership makes to record Cristy's initial contribution.
Question 3 options:
A. credit to Accumulated Depreciation for $55,000
B. debit to equipment for $55,000
C. debit to equipment for $65,000
D. debit to equipment for $14,000
In the partnership formed by Felix and Cristy, he is investing a truck with a book value of $15,000 and a fair value of $12,000. Cristy is investing a building with a book value of $40,000 and a fair value of $55,000 with a mortgage of $20,000. Determine the amount the building should be recorded at.
Question 4 options:
A. $15,000
B. $20,000
C. $40,000
D. $55,000
Identify the item that should not be considered an expense of a partnership when determining income for Year 2014.
Question 5 options:
A. Salary expense to partners
B. Insurance expense
C. Supplies expense
D. Transportation expense
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