with a 30% are partners and share equally in income or loss. Chase's current capital is $135,000 and Hatch's is $120,000. Chase and Hatch agree to accept Flax vw interest in the partnership. Flax x invests $115,000 in the partnership. The balances in Chase's and Hatch's capital accounts after admission of the new partner A. Chase $135,000; Hatch $120,000. B. Chase $137,000, Hatch $122,000 C. Chase $133,000; Hatch $118,000. D. Chase $139,000; Hatch $120,000. E. Chase $135,000; Hatch $124,000. James wants to invest cash so that he will have a one-third interest in Thomas and Stanley's company. The capital balances are $6,000 Thomas $2,000 Stanley. The admission of James would be A. debit Cash $2,666.67; credit James Capital $2,666.67. B. debit Cash $5,333.33; credit James Capital $5,333.33. C. debit Cash $4,000, credit James Capital $4,000 10. D. debit Cash $3,000; credit James Capital $3,000. None of the above. E. 11. Sanders sold Sidney his equity in Stamm and Sanders partnership for $12,000. If both Stamm and Sanders had $9,000 capital balances, the entry to record this transaction would be debit Cash $12,000; credit Sidney Capital $12,000. debit Sanders Capital $9,000; credit Sidney Capital $9,000. debit Cash $12,000, credit Sanders Capital $12,000. Debit Stamm Capital $9,000; credit Sidney Capital $9,000. None of the above. A. B. C. D. E. 12. Jane, Castle, and Sean are dissolving their partnership. Their partnership agreement allocates each partner an equal share of all income and losses. The current period's ending capital account balances are Jane, $54,000, Castle, $42,000; and Sean, $(6,000). After all assets are sold and liabilities are paid, there is $90,000 in cash to be distributed. Sean is unable to pay the deficiency. The journal entry to record the distribution should be: A. Debit Jane, Capital $54,000; debit Castle, Capital $36,000; credit Cash $90,000. B. Debit Jane, Capital $54,000; debit Castle, Capital $42,000; credit Cash $96,000. C. Debit Jane, Capital $51,000; debit Castle, Capital $39,000; credit Cash $90,000. D. Debit Cash $90,000, debit Sean, Capital $6,000, credit Jane, Capital $54,000, credit Castle, Capital $42,000. E. Debit Cash $90,000; credit Jane, Capital $30,000; credit Castle, Capital $30,000; credit Sean, Capital $30,000