Bill and Bob share profits of their p ,B,C,D,E) or fill in the correct answerOnly On the Answer Sheet (last page)1) Edwin and Darren have decided to form a partnership. Edwin contributes $80,000 cash andmerchandise inventory with a current market value of $17,000. Darren contributes $2400 cashand office furniture with a current market value of $3200. When journalizing these transactions.A) Office Furniture will be debited for $1070B) Office Furniture will be credited for $3200C) Office Furniture will be debited for $3200D) Office Furniture will be credited for $1070E) None of the above2) Bill and Bob share profits of their partnership in the ratio of 6:1 respectively. If the net incomeof the firm is $29,000, calculate Bill's share of net income. (Do not round any intermediatecalculations.)A) $20,714; B) S4143; C) $29,000; D) $24,857; E) None of the aboveO Searchmang letter3) True or False: When a new partner is admitted to a partnership by purchasing an existingpartner's interest, the business's accounting records do not record the transfer of cash from thenew partner to the existing partner. T. True; or F. FalseAccessibility: InvestigateLOhpGiO Focus

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Bill and Bob share profits of their p

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Bill and Bob share profits of their p

,B,C,D,E) or fill in the correct answer
Only On the Answer Sheet (last page)
1) Edwin and Darren have decided to form a partnership. Edwin contributes $80,000 cash and
merchandise inventory with a current market value of $17,000. Darren contributes $2400 cash
and office furniture with a current market value of $3200. When journalizing these transactions.
A) Office Furniture will be debited for $1070
B) Office Furniture will be credited for $3200
C) Office Furniture will be debited for $3200
D) Office Furniture will be credited for $1070
E) None of the above
2) Bill and Bob share profits of their partnership in the ratio of 6:1 respectively. If the net income
of the firm is $29,000, calculate Bill's share of net income. (Do not round any intermediate
calculations.)
A) $20,714; B) S4143; C) $29,000; D) $24,857; E) None of the above
O Search
mang letter
3) True or False: When a new partner is admitted to a partnership by purchasing an existing
partner's interest, the business's accounting records do not record the transfer of cash from the
new partner to the existing partner. T. True; or F. False
Accessibility: Investigate
LO
hp
Gi
O Focus

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