Questions 11,12 , 13 & 14

Items 11 - 12 refer to the following information St January 1, 2002 A, B and Care partners with capital balances of 580.000. 545.000 and in the ratio 35 3530 respectively, the partners amend their partnership agreement to read that effectively July 1, 2002 the profil sharing ratio will be 50:30:20 for partners A, B and C. The net income for the year was $90,000, which was carned evenly throughout the year. Calculate the share of profit Partner A will receive for the year ended 31 Dec 2002. A. $15.750 B. $22.500 C. $38.250 D. 542.850 12. Calculate the share of profit Partner B will receive at July 1, 2002. A. $13.500 B. $15,750 C. $22.500 D. $29,250 13. Jeff, Fray and Mike are in partnership sharing profits and losses in the ratio 3:2:1. Mike retired and left Jeff and Fray to continue running the business. The new profit sharing ratio is 3:2. Goodwill is valued at $18 000. The entries to adjust goodwill in the capital accounts are A. Debit Jeff with $1 800, debit Fray with $1 200 and credit Mike with 53 000 B. Credit Jeff with S1 800, debit Fray with SI 200 and debit Mike with $3 000 C. Debit Jeff with S1 800, credit Fray with SI 200 and debit Mike with S3 000 D. Credit Jeff with $1 800, credit Fray with S1 200 and credit Mike with 53 000 14. Dick and Charles are in partnership sharing profits and losses equally. They admit Swift as a partner. A revaluation of the firm's net assets at the same date shows a loss on revaluation of $52 000. The new profitloss sharing ratio is Dick 275, Charles 2/5, and Swift 1/5. The revaluation of the assets will be recorded in the books as: A. increases in the balances on Dick and Charles capital accounts B. reductions in the balances on Dick and Charles capital accounts C. increases in the balances on Dick and Charles capital accounts and a reduction on Swift's capital D. reductions in the balances on Dick and Charles capital accounts and an increase in Swift's capital