12 A partner invests into a partnership a building with a $25,000 carrying value and $40,000 fair market value. The related mortgage record the investment in partnership is: payable of $12,500 is assumed by the partnership. The entry to A) Building $ 25,000 Mortgage Payable Capital B) Building $ 40,000 Mortgage Payable Capital C) Capital 40,000 Mortgage Payable Building D) Capital $ 25,000 Mortgage Payable Building E) None of the above 13 Partners R and S receive a salary allowance of $3,000 and $7,000, respectively, and share the remainder equally. If the company earned $4,000 during the period, the entry to close the income or loss into their capital accounts is: 10,000 A) Income Summary R, Capital S, Capital moo 4,000 B) Income Summary S, Capital 14,000 C) Income Summary R, Capital S, Capital D) Income Summary R, Capital S, Capital E) None of the above $ $ $ $ $ $ 12,500 12,500 6,000 12,500 27,500 $ $ 12,500 27,500 $ 12,500 12,500 $ $ $ 3,000 7,000 4,000 7,000 7,000 3,000 3,000
12 A partner invests into a partnership a building with a $25,000 carrying value and $40,000 fair market value. The related mortgage record the investment in partnership is: payable of $12,500 is assumed by the partnership. The entry to A) Building $ 25,000 Mortgage Payable Capital B) Building $ 40,000 Mortgage Payable Capital C) Capital 40,000 Mortgage Payable Building D) Capital $ 25,000 Mortgage Payable Building E) None of the above 13 Partners R and S receive a salary allowance of $3,000 and $7,000, respectively, and share the remainder equally. If the company earned $4,000 during the period, the entry to close the income or loss into their capital accounts is: 10,000 A) Income Summary R, Capital S, Capital moo 4,000 B) Income Summary S, Capital 14,000 C) Income Summary R, Capital S, Capital D) Income Summary R, Capital S, Capital E) None of the above $ $ $ $ $ $ 12,500 12,500 6,000 12,500 27,500 $ $ 12,500 27,500 $ 12,500 12,500 $ $ $ 3,000 7,000 4,000 7,000 7,000 3,000 3,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:12 A partner invests into a partnership a building with a $25,000
carrying value and $40,000 fair market value. The related
payable of $12,500 is assumed by the partnership. The entry to
record the investment in partnership is:
mortgage
A) Building
$
25,000
Mortgage Payable
Capital
B) Building
40,000
Mortgage Payable
Capital
C) Capital
40,000
Mortgage Payable
Building
D) Capital
$
25,000
Mortgage Payable
Building
E)
None of the above
13 Partners R and S receive a salary allowance of $3,000 and $7,000,
respectively, and share the remainder equally. If the company
earned $4,000 during the period, the entry to close the income or
loss into their capital accounts is:
$
10,000
A) Income Summary
R, Capital
S, Capital
$amos 4,000
B) Income Summary
S, Capital
$
14,000
C)
Income Summary
R, Capital
S, Capital
D) Income Summary
R, Capital
S, Capital
E)
None of the above
$
$
$
$
$
$
$
$
$
$
12,500
12,500
12,500
27,500
$
$
6,000
12,500
27,500
$
12,500
12,500
$
$
LA LA
$
$
3,000
7,000
4,000
7,000
7,000
3,000
3,000
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