Tic, Tac, and Toe have year-end capital balances, before closing entries, of $34000 , $182,000, and $68000
Question:
1) Refer to Table 2. Assuming the business earns a profit of $72,500, the amount allocated to Tic is:
A) $29,290
B) $26,390
C) $24,167
D) $16,820
2) Refer to Table 2. Assuming the company earns a profit of $146,500, the balance of Tac's capital account after closing out the income summary account is:
A) $235,326
B) $348,833
C) $348,500
D) $149,988
3) Refer to Table 2. Assuming the business incurs a loss of $87,000, Toe's share of the loss is:
A) $35,148
B) $20,184
C) $29,000
D) $31,668
4) Refer to Table 2. Assuming the partnership incurs a loss of $105,000, the balance in Tic's capital account after closing out the income summary account is:
A) $159,580
B) $42,420
C) $139,580
D) $73,580
Mariah and Brittney have formed a partnership and invested $140,000 and $160,000, respectively. They have agreed to share profits as follows:
1)The first $30,000 is to be allocated according to their original capital contributions to the partnership.
2)Mariah is to receive a "salary" of $40,000 and Brittney is to receive a "salary" of $45,000.
3)The remainder is to be allocated 5:3, respectively.
) Refer to Table 3. If the business earns a net income of $118,000, Mariah's share is:
A) $62,125
B) $61,000
C) $55,875
D) $54,000
5) Refer to Table 3. Assuming the business incurs a net loss of $36,000, Brittney's capital account will be:
A) debited for $56,625
B) debited for $94,375
C) credited for $4,375
D) credited for $40,375
6) Refer to Table 3. If the partnership incurred a loss of $18,000, Mariah's capital account would be ________, and Brittney's capital account would be ________.
A) debited for $83,125, debited for $49,875
B) credited for $49,875, debited for $83,125
C) debited for $29,125, credited for $11,125
D) unaffected, unaffected
Jana Jones, Jill Jacks, and Carolle Cann formed a partnership by investing $250,000, $200,000, and $150,000, respectively. They agreed to share profits as follows:
1)Annual "salary" allowance of $40,000 to Jana, $20,000 to Jill, and $30,000 to Carolle.
2)Interest on their original capital balances of 10%.
3)Any remainder equally.
7) Refer to Table 4. If the partnership earns a profit of $150,000 its first year, then Jana's capital account would be credited for:
A) $40,000
B) $45,000
C) $65,000
D) $42,000
8) Refer to Table 4. Assuming the business has income of $60,000 during its first year, the amount allocated to Jill is:
A) $20,000
B) $15,000
C) $35,000
D) $10,000
9) Refer to Table 4. If during the first year of business, the company incurs a net loss of $20,000, the capital account of Carolle would:
A) increase $56,667
B) increase $11,667
C) decrease $56,667
D) decrease $11,667
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