The Calvin-Dogwood Partnership owns inventory that was purchased for $65,800, has a current replacement cost of $58,900, and is priced to sell for $93,600. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted?

a.$65,800

b.$34,700

c.$58,900

d.$93,600

2)

The balance sheet of Morgan and Rockwell was as follows immediately prior to the partnership's liquidation: cash, $22,300; other assets, $144,000; liabilities, $41,100; Morgan, capital, $60,100; Rockwell, capital, $65,100. The other assets were sold for $124,200. Morgan and Rockwell share profits and losses in a 2:1 ratio. As a final cash distribution from the liquidation, Morgan will receive cash totaling

a.$14,867

b.$22,300

c.$46,900

d.$60,100

3)

Franco and Jason share income and losses in a 2:1 ratio after allowing for salaries of $18,300 and $34,200, respectively. If the partnership suffers a $16,500 loss, by how much would Jason's capital account increase?

a.$11,200

b.$34,200

c.$22,600

d.$28,700

4)

Hannah Johnson contributed equipment, inventory, and $46,700 cash to a partnership. The equipment had a book value of $28,200 and a market value of $33,900. The inventory had a book value of $47,500 but only had a market value of $18,400 due to obsolescence. The partnership also assumed a $14,300 note payable owed by Hannah that was originally used to purchase the equipment.

What amount should be recorded to Hannah's capital account?

a.$108,100

b.$128,100

c.$84,700

d.$113,300

5)

Xavier and Yolanda have original investments of $47,500 and $104,400, respectively, in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 20%; salary allowances of $27,800 and $29,900, respectively; and the remainder to be divided equally. How much of the net income of $107,300 is allocated to Xavier?

a.$56,292

b.$27,800

c.$37,300

d.$46,910

6)

Jesse and Tim form a partnership by combining the assets of their separate businesses. Jesse contributes accounts receivable with a face amount of $49,000 and equipment with a cost of $180,000 and accumulated depreciation of $100,000. The partners agree that the equipment is to be valued at $68,500, that $3,700 of the accounts receivable are completely worthless and are not to be accepted by the partnership, and that $2,100 is a reasonable allowance for the uncollectibility of the remaining accounts receivable. Tim contributes cash of $20,000 and merchandise inventory of $45,000. The partners agree that the merchandise inventory is to be valued at $48,500.

Journalize the entries to record in the partnership accounts (a) Jesse's investment and (b) Tim's investment. If an amount box does not require an entry, leave it blank.

(a)
(b)