Reference no: EM133185373
Questions -
Q1. Sam, Kat, and Brian are partners with capital balances of $20,000, $30,000, and $50,000, respectively. They share income and losses in the ratio of 3:2:1. Revenue accounts for the period totaled $350,000. Expense accounts for the period totaled $380,000. The revenue and expense accounts are closed to the capital accounts. Kat withdraws from the partnership. How much cash should he receive upon withdrawal?
a. $30,000
b. $20,000
c. $25,000
d. $40,000
Q2. Dave and Ava have original investments of $50,000 and $100,000, respectively, in a partnership. Dave receives a salary allowance of $34,000, while Ava receives a salary allowance of $26,000. The partners agree that an interest allowance of 20% should be given to each partner base on their capital balances. All remaining net income should be divided equally. If net income is $120,000, how much should be allocated to Ava?
a. $46,000
b. $60,000
c. $61,000
d. $66,00
Q3. Cynthia invests $20,000 for a 1/3 interest in a partnership. Nixon and Julia, the existing partners have capital balances of $20,000 and $14,000, respectively before admitting Cynthia. Income and losses are shared using a ratio of 2 to 1. After the distribution of the bonus, what is the balance in Cynthia's capital account?
a. $54,000
b. $20,000
c. $18,000
d. $22,000
Q4. Prior to liquidating their partnership, Stacy and Emma had capital accounts of $70,000 and $110,000, respectively. The partnership assets were sold for $285,000. The partnership had $25,000 of liabilities. Stacy and Emma share income and losses equally. Determine the amount received by Stacy as a final distribution from the liquidation of the partnership.
a. $70,000
b. $150,000
c. $110,000
d. $125,000
Q5. Dave and Ava have original investments of $50,000 and $100,000, respectively, in a partnership. Dave receives a salary allowance of $34,000, while Ava receives a salary allowance of $26,000. The partners agree that an interest allowance of 20% should be given to each partner base on their capital balances. All remaining net income should be divided equally. If net income is $120,000, what will be the balance in Ava's capital account after the division of income?
a. $161,000
b. $146,000
c. $100,000
d. $126,000