The March 25 cash register reading for Cooley Grocery shows sales of $10,000 and sales taxes of $600 (sales tax rate of 6%), the journal entry is:

a.

Debit Accounts receivable 10,600 and credit both Sales revenue 10,000 and Sales tax payable 600

b.

Debit Cash 10,000 and credit both Sales revenue 9,400 and Sales tax payable 600

c.

Debit Accounts receivable 10,000 and credit both Sales revenue 9,400 and Sales tax payable 600

d.

Debit Cash 10,600 and credit both Sales revenue 10,000 and Sales tax payable 600

Partners Ana, Beth, and Cathy have capital account balances of $90,000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership, noncash assets with a book value of $75,000 are sold for $30,000. The balance of Beths Capital account after the sale is

a.

$67,500

b.

$76,500

c.

$99,000

d.

$81,000

First National Bank agrees to lend $100,000 on September 1, 2014, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1.the adjusting entry on Dec. 31:

a.

Debit Interest payable 4,000 and credit Interest expense 4,000

b.

Debit Interest expense 4,000 and credit Cash 4,000

c.

Debit Interest expense 4,000 and credit Interest payable 4,000

d.

Debit Cash 4,000 and credit Interest payable 4,000

In liquidation of Peterson, Laney and Howell Partnership, balances prior to the distribution of cash to the partners are: Cash $900,000; Peterson, Capital $420,000; Laney, Capital $390,000, and Howell, Capital $90,000. The income ratio is 6:2:2, respectively. How much cash should be distributed to Peterson?

a.

$420,000

b.

$450,000

c.

$408,750

d.

$375,000