Hill, Williams, and Kelce are partners and share income in a 1:2:2 ratio (in ratio form: Hill, 1/5; Williams, 2/5; Kelce, 2/5). The partnership's capital balances are as follows: Hill, $21,000, Williams $33,000 and Kelce $60,000. Hill decides to withdraw from the partnership and agrees to take $15,000 cash in payment of his capital balance. The journal entry to record the withdrawal contains a: Multiple Choice Debit to Cash for $15,000. Credit to Hill, Capital for $21,000. Debit to Hill, Withdrawals for $21,000. Credit to Capital, Kelce for $3,000. Credit to Cash for $21,000. 4

Hill, Williams, and Kelce are partners and share income in a 1:2:2 ratio (in ratio form: Hill, 1/5; Williams, 2/5; Kelce, 2/5). The partnership's capital balances are as follows: Hill, $21,000, Williams $33,000 and Kelce $60,000. Hill decides to withdraw from the partnership and agrees to take $15,000 cash in payment of his capital balance. The journal entry to record the withdrawal contains a: Multiple Choice Debit to Cash for $15,000. Credit to Hill, Capital for $21,000. Debit to Hill, Withdrawals for $21,000. Credit to Capital, Kelce for $3,000. Credit to Cash for $21,000. 4

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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