Question 21 Current liabilities are due 2 pts c but not receivable for more than one year. but not payable for more than one year. and receivable within one year. and payable within one year. 2 pts Question 22 The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is debit Accounts Payable; credit Notes Payable, debit Cash; credit Notes Payable. debit Notes Payable; credit Cash. debit Cash and Interest Expense, credit Notes Payable. Question 23 2 pts Which of the following is an advantage of a general partnership when compared to a corporation? A partnership is more likely to have a positive net income. The partnership is relatively inexpensive to organize. Creditors to a partnership cannot attach personal assets of partners. c The partnership usually hires professional managers. Question 24 A ratio of 4:2:1 is the same as 2 pts 40% 20%:10%. 4/7:2/7:1/7 4/10:2/10:1/20 7147/2:7/1. Question 25 2 pts The characteristic of a partnership that gives the authority to any partner to legally bind the partnership and all other partners to business contracts is called unlimited liability ease of formation mutual agency dissolution Question 26 10 pts Prepare a trial balance, listing the following accounts in proper sequence. The accounts (all normal balances) were taken from the ledger of Sophie Designs on April 30. Accounts Payable $ 4,100 Rent Expense $11,500 Accounts Receivable 3.450 Salary Expense 14,000 Cash 6,700 Fees Earned 45,425 Sophie Dawson, Capital 17,800 Supplies 3,125 Sophie Dawson, Drawing 7,500 Supplies Expense 1,700 Equipment 14,500 Utilities Expense 4,000 Miscellaneous Expense 850 10 pts 750 Question 27 Jordon James started JJJ Consulting on January 1. The following are the account balances at the end of the first month of business, before adjusting entries were recorded: Accounts Payable $ 300 Accounts Receivable Cash 6,300 Consulting Revenue 4,925 Equipment 7,000 Owner's Capital 15,000 Owner's Drawing 1,375 Prepaid Rent 4,000 Supplies 800 Adjustment data: Supplies on hand at the end of the month, $200 Unbilled consulting revenue, $700 Rent expense for the month, $1,000 Depreciation on equipment, $90 Instructions: a. Prepare the required adjusting entries, adding accounts as needed. b. Prepare an adjusted trial balance for JJJ Consulting as of January 31. Question 28 10 pts The following accounts were taken from the Adjusted Trial Balance columns of the end- of-period spreadsheet for April 30, for Finnegan Co.: Accumulated Depreciation $32,000 Fees Earned 78,000 Depreciation Expense 7,250 Rent Expense 34.000 Prepaid Insurance 6,000 Supplies 400 Supplies Expense 1.800 Prepare an income statement. 10 pts Question 29 The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a Checks outstanding totaled $5,975. b. A deposit of $3,796 had been made too late to appear on the bank statement. c. A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account. d. The bank collected $4,515 on a note left for collection of which $515 was interest revenue. e. Bank service charges for May amounted to $70. A check for $894 was returned by the bank because of insufficient funds. Prepare a bank reconciliation as of May 31. Journalize the necessary entries. Santiago Co. Bank Reconciliation May 31 Journal Date Credit Description Post. Ref. Debit Question 30 10 pts Holly and Luke formed a partnership, investing $240,000 and $80,000, respectively. Determine their participation in the year's net income of $200,000 under each of the following independent assumptions: a. No agreement concerning division of net income b. Divided in the ratio of original capital investment C. Interest at the rate of 15% allowed on original investments and the remainder divided in the ratio of 2:3 d. Salary allowances of $50,000 and $70,000, respectively, and the balance divided equally e. Allowance of interest at the rate of 15% on original investments, salary allowances of $50,000 and $70,000, respectively, and the remainder divided equally