Multiple Choice Question 78 The Mayer and Rodin partnership agreement stipulates that profits and losses will be shared equally after salary allowances of $402000 for Mayer and $194000 for Rodin. At the beginning of the year, Mayer's Capital account had a balance of $793000, while Rodin's Capital account had a balance of $690000. Net income for the year was $499000. The balance of Rodin's Capital account at the end of the year after closing is $884000. $932500. $191000. $835500 Multiple Choice Question 69 M. Abadie and S. Collier combine their individual sole proprietorships to start the Abadie - Collier partnership. M. Abadie and S. Collier invest in the partnership as follows Book Value Fair Value Abadie Collier Abadie Collier $6900 Cash $20300 $20300 $6900 Accounts Receivable 4800 9300 4800 9300 Allowance for Doubtful (530) (900) Accounts (1300) (2130) 9900 23100 Equipment 14400 13800 Accumulated Depreciation (2500) (8600) The entries to record the investment will include a credit to: Abadie, Capital of $40200. Collier, Capital of $20700. Abadie, Capital of $41500. OCollier, Capital of $25300 Multiple Choice Question 127 Gable and Devito share partnership profits and losses in the ratio of 6:4. Gable's Capital account balance is $162000 and Devito's Capital account balance is $107000. Nance is admitted to the partnership by investing $172000 and is to receive a one-fourth ownership interest. Gable, Devito and Nance's capital balances after Nance's investment will be Gable Devito Nance $162000 $107000 $172000 $199050 $131700 $110250 $187000 $135250 $110250 $190000 $132250 $110250 Multiple Choice Question 125 Encisco and Ollinger are partners who share profits and losses equally and have capital balances of $283400 and $244100, respectively. Parks is admitted into the partnership by investing $244100 for a 30% capital interest. The account balance of Ollinger, Capital after the admission of Parks would be $250410. $237790. $244100. $231480. Multiple Choice Question 122 Jackson is admitted to a partnership with a 20% capital interest by a cash investment of $370000. If total capital of the partnership is $1551000 before admitting Jackson, the bonus to Jackson is $192100 $7100 $185000 $14200 Multiple Choice Question 115 In liquidation, balances prior to the distribution of cash to the partners are: Cash $898000; Peterson, Capital $420000; Laney, Capital $400000, and Howell, Capital $78000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Peterson? $381000 $420000 $446000 $410250 Multiple Choice Question 92 Mary Jessica's capital statement reveals that her drawings during the year were $51000. She made an additional capital investment of $24200 and her share of the net loss for the year was $9700. Her ending capital balance was $195000. What was Jessica's beginning capital balance? $255700 $231500 $221800 $180500
