Hillary Bruce and Cindy own a partnership firm. Hillary has an ownership interest of $24,000, Bruce has an ownership interest of $41,000, and Cindy has an ownership interest of $30,000. In the process of liquidation, the partnership sells non cash assets and registers a gain of $30,000. The profit loss sharing agreement is 1:2:3 respectively. Which of the following is TRUE when a journal entry for the allocation of gain is recorded? A) Hillary Capital is credited for $10,000. B) Cindy, Capital Is credited for $15,000 C) Hillary capital is debited for $10,000. D) Cindy Capital is credited for $ 10,000
Hillary Bruce and Cindy own a partnership firm. Hillary has an ownership interest of $24,000, Bruce has an ownership interest of $41,000, and Cindy has an ownership interest of $30,000. In the process of liquidation, the partnership sells non cash assets and registers a gain of $30,000. The profit loss sharing agreement is 1:2:3 respectively. Which of the following is TRUE when a journal entry for the allocation of gain is recorded? A) Hillary Capital is credited for $10,000. B) Cindy, Capital Is credited for $15,000 C) Hillary capital is debited for $10,000. D) Cindy Capital is credited for $ 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hillary Bruce and Cindy own a
A) Hillary Capital is credited for $10,000.
B) Cindy, Capital Is credited for $15,000
C) Hillary capital is debited for $10,000.
D) Cindy Capital is credited for $ 10,000
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