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S Reising contributed $48000 in cash plus equipment valued at $73000 to the Reising

S. Reising contributed $48,000 in cash plus equipment valued at $73,000 to the Reising Construction Partnership. The journal entry to record the transaction for the partnership is: 
A. 
 

Cash......................................................................

48,000

 

Equipment.............................................................

73,000

 

S. Reising, Capital..........................................

 

121,000


B. 
 

Cash......................................................................

48,000

 

Equipment.............................................................

73,000

 

Reising Construction Partnership, Capital.....

 

121,000


C. 
 

Reising Construction Partnership.........................

121,000

 

S. Reising, Capital..........................................

 

121,000


D. 
 

S. Reising, Capital................................................

121,000

 

Reising Construction Partnership, Capital.....

 

121,000


E. 
 

Cash......................................................................

48,000

 

Equipment.............................................................

73,000

 

Common Stock...............................................

 

121,000

 

 

 

 

 

 

52. S. Reising contributed $48,000 in cash plus equipment valued at $73,000 to the Reising Construction Partnership. The equipment had a book value of $65,000. The journal entry to record the transaction for the partnership would include a:

A. Debit to Equipment for $73,000.

B. Debit to Equipment for $65,000.

C. Credit to S. Reising, Capital for $113,000.

D. Credit to Common Stock for $121,000

E. Credit to the Gain on Asset for $8,000.
 

 

 

 

53. Chen and Wright are forming a partnership. Chen will invest a building that currently is being used by another business owned by Chen. The building has a market value of $90,000. Also, the partnership will assume responsibility for a $30,000 note secured by a mortgage on that building. Wright will invest $50,000 cash. For the partnership, the amounts to be recorded for the building and for Chen's Capital account are: 
A. Building, $90,000 and Chen, Capital, $90,000.
B. Building, $60,000 and Chen, Capital, $60,000.
C. Building, $60,000 and Chen, Capital, $50,000.
D. Building, $90,000 and Chen, Capital, $60,000.
E. Building, $60,000 and Chen, Capital, $90,000.

 

 

 

 

54. Collins and Farina are forming a partnership. Collins is investing a building that has a market value of $80,000. However, the building carries a $56,000 mortgage that will be assumed by the partnership. Farina is investing $20,000 cash. The balance of Collins' Capital account will be: 
A. $80,000
B. $24,000
C. $56,000
D. $44,000
E. $60,000

 

 

 

 

 

55. Collins and Farina are forming a partnership. Collins is investing a building that has a market value of $80,000 and a book value of $65,000. However, the building carries a $56,000 mortgage that will be assumed by the partnership. Farina is investing $20,000 cash. Total capital in the partnership will be:

A. $80,000
B. $24,000
C. $56,000
D. $44,000
E. $60,000

 

 

 

 

56. Miller and Reising formed a partnership. Miller contributed land valued at $90,000 and a building valued at $115,000. Reising contributed $90,000 cash. In addition, the partnership assumed responsibility for Miller's $85,000 mortgage payable associated with the land and building. What are the balances of the partners' capital accounts after these transactions have been recorded? 
A. Miller: $120,000; Reising: $90,000.
B. Miller: $205,000; Reising: $90,000.
C. Miller: $105,000; Reising: $105,000.
D. Miller: $90,000; Reising: $120,000.
E. Miller: $90,000; Reising: $205,000.

 

 

 

 

57. In the absence of a partnership agreement, the law says that income and loss should be allocated based on: 
A. A fractional basis.
B. The ratio of capital investments.
C. Salary allowances.
D. Equal shares.
E. Interest allowances.

 

 

 

 

58. If a partnership contract provides for interest at 10% annually on each partner's investment, the interest: 
A. Is ignored when earnings are not sufficient to pay interest.
B. Is an allowance that can make up for unequal capital contribution.
C. Is an expense of the business.
D. Must be paid because the partnership contract has unlimited life.
E. Legally becomes a liability of the general partner.

 

 

 

 

59. Rice, Hepburn and DiMarco formed a partnership with Rice contributing $60,000, Hepburn contributing $50,000, and DiMarco contributing $40,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $75,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to DiMarco's capital account? 
A. $20,000
B. $25,000
C. $30,000
D. $40,000
E. $75,000

 

 

 

 

 

60. Blaser, Lukins, and Franko formed a partnership with Blaser contributing $160,000, Lukins contributing $520,000, and Franko contributing $240,000. Their partnership agreement called for the income (loss) division to be based on the ratio of capital investments. If the partnership had income of $275,000 for its first year of operation, what amount of income (rounded to the nearest dollar) would be credited to Franko's capital account? 
A. $50,000
B. $240,000
C. $91,667
D. $71,739
E. $275,000

Jan 28 2020 View more View Less

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