Principles of Financial Accounting.
22nd Edition
ISBN: 9780077632892
Author: John J. Wild
Publisher: McGraw Hill
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Question
Chapter 12, Problem 1MCQ
To determine
Identify the amount would be recorded for the building and Partner S’ capital account.
Expert Solution & Answer
Answer to Problem 1MCQ
e. Building, $250,000; Stokely Capital, $200,000.
Explanation of Solution
Assets:
These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, non-current assets, property, plant, and equipment, and intangible assets.
Capital:
The term capital refers to any financial resources owned by the business to be used for its growth and expansion in the near future. A company’s capital includes investments, stocks, and other assets that are able to generate revenue in the near future.
Option (e): Building, $250,000; Stokely Capital, $200,000 is the correct answer.
- The amount invested by Partner S in the building is $250,000.
- Calculate the amount of S’ capital:
Thus, the amount of building is $250,000 and S’s capital is $200,000.
As per the above explanation, option (a), (b), (c) and (d) are incorrect answer. Hence, option (e) is the correct answer.
Conclusion
Therefore, option (e) Building, $250,000; Stokely Capital, $200,000 is the correct answer.
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Chapter 12 Solutions
Principles of Financial Accounting.
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - The Field, Brown Snow partnership was begun with...Ch. 12 - Prob. 8QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 1APCh. 12 - Prob. 2APCh. 12 - Prob. 3APCh. 12 - Prob. 4APCh. 12 - Prob. 5APCh. 12 - Prob. 1BPCh. 12 - Prob. 2BPCh. 12 - Prob. 3BPCh. 12 - Prob. 4BPCh. 12 - Prob. 5BPCh. 12 - Prob. 12SPCh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 7BTNCh. 12 - Prob. 8BTN
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