Question
Please help me with these prob asap . Having a hard time Harriet, Mickey, and Zack decide to liquidate their partnership. All assets are sold,
Please help me with these prob asap . Having a hard time
Harriet, Mickey, and Zack decide to liquidate their partnership. All assets are sold, and the liabilities are paid. Following these transactions, the capital balances and profit and loss percentages are as follows: Harriet, $27,800 and 30%; Mickey, ($5,900) and 40%; Zack, $43,000 and 30%. Mickey is unable to contribute any assets to reduce the deficit. How much cash will Harriet receive as a result of the partnership liquidation?
a.$24,850
b.$21,900
c.$27,800
d.$26,030
A ratio of 4:2:1 is the same as
a.4/10:2/10:1/20
b.40%:20%:10%
c.4/7:2/7:1/7
d.7/4:7/2:7/1
Seth and Beth have original investments of $50,000 and $100,000, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%; salary allowances of $27,000 and $18,000, respectively; and the remainder to be divided equally. How much of the net income of $42,000 is allocated to Seth?
a.$23,000
b.$0
c.$32,000
d.$20,000
Immediately prior to the admission of Allen, the Sanson-Jeremy Partnership assets had been adjusted to current market prices and the capital balances of Sanson and Jeremy were $80,000 and $120,000, respectively. If the parties agree that the business is worth $240,000, what is the amount of bonus that should be recognized in the accounts at the admission of Allen?
a.$40,000
b.$100,000
c.$80,000
d.$60,000
Hannah Johnson contributed equipment, inventory, and $54,500 cash to a partnership. The equipment had a book value of $27,000 and a market value of $34,500. The inventory had a book value of $57,500 but only had a market value of $11,400 due to obsolescence. The partnership also assumed a $12,900 note payable owed by Hannah that was originally used to purchase the equipment.
What amount should be recorded to Hannah's capital account?
a.$126,100
b.$87,500
c.$146,500
d.$113,300
Which of the following isnotone of the four major forms of business entities that are discussed in this chapter?
a.corporation
b.partnership
c.subchapter S corporation
d.sole proprietorship
A change in the ownership of a partnership results in the
a.realization of the partnership
b.dissolution of the partnership
c.consolidating of the partnership
d.liquidating of the partnership
An advantage of the partnership form of business organization is
a.mutual agency
b.limited life
c.ease of formation
d.unlimited liability
The remaining cash of a partnership (after creditors have been paid) upon liquidation is divided among partners according to their
a.drawing balances
b.contribution of assets
c.capital balances
d.income sharing ratio
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