who have agreed to adnit Y, who will invest records Y's admission 16 W and X are partners and x $30, 000. W and X had shared 15,000 in the capital balances were W $15, protits and losses equally. The entry that partnership tor a 20 percent interest. The previous 000 to the partnership is: 15,000 s 15, 000 A) Cash x, Capital $ 15,000 s 1,500 1,500 B) Cash ,Capital x, Capital Y, Capital s 12, 000 c) Cash $ 12,000 s 12, 000 r, Capital D) Y, Capital 3, 000 Cash 3,000 E) None of the above 17 2 has bought B's interest in the AsB Partnership for a $60,000 direct payment to B. The capital balances before the sale were $24,000 and 536,000, respectively. purchase of interest in partnership is: The entry to record the A) B, Capital 2, Capital 2, Capital Cash S 60,000 $36,000 $ 60,000 $ 60,000 60, 000 $ 36, 000 60, 000 S 60, 000 B) B, capital c) 2, Capital D) Cash 2, Capital E) None of the above 18 A liquidation differs from a dissolution is that in a liquidation A) the business will not continue B) assets may be revalued c) gains and losses are distributed according to the partnership agreement D) there may be an adjustment of partners' Capital accounts E) None of the above non-cumulative 19 gra company has 6,000 shares of 5%, $100 par outatanding at December 31, 2017. No dividends have been paid on this arrears at December 31, 2017 total ock for 2016 or 2017. Dlvidends in st a) B) $3,000 C) 30,000 D) 60,000 $0 E) None of the above f $10 par 20 On January 1, Layline Corporation had 160,000 shares o value common stock outstanding. On June 17, the company a 15t stock dividend to stockholders of record on June 20 value of the stock was $15 on June 17. The transaction of June 17 would include a Market entry to record the A) debit to stock Dividends for $360,000. B) credit to Cash for $360,000. C) credit to Connon Stock Dividends Distributable for $360,000. D) credit to Common Stock Dividends Distributable for $120, 000. E) None of the above 21 Cherokee, Inc. paid $180,000 to buy back 20,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a A) debit to Retained Earnings for $60,000. B) credit to Retained Earnings for $20,000. ) debit to Paid-in Capital from Treasury Stock for $180,000 D) credit to Paid-in Capital trom Treasury Stock tor $20,000. E) None of the above 22 Which of the tollowing is not true ot a corporation? A) It may buy, own, and sell property B) It may sue and be sued. C) The acts of its owners bind the corporation. D) It may enter into binding legal contracts in its own name. E) None of the above 23 Owne rs' equity for a corporation is identified as each of the following except A) corporate capital. B) paid-in capital. C) partners' equity. D) stockholders' equity. E) none of the above
