# 118 in liquidation balances prior to the distribution of cash to the partners are ca 4325056

118.In liquidation, balances prior to the distribution of cash to the partners are: Cash \$204,000; Paley, Capital \$112,000; Stengel, Capital \$104,000, and King, Capital \$12,000 deficiency. The income ratio is 6:2:2, respectively. How much cash should be distributed to Stengel if King does not pay his deficiency?

a.\$98,000

b.\$101,000

c.\$95,000

d.\$104,000

119.Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively.

a.\$312,000.

b.\$288,000.

c.\$204,000.

d.\$516,000.

120.Use the following account balance information for Granobfin Partnership with income ratios of 2:4:4 for Granger, Noble, and Finn, respectively.

a.\$312,000.

b.\$228,000.

c.\$144,000.

d.\$204,000.

a121.R. Schoen purchases a 25% interest for \$60,000 when the Hise, Poole, Lagos partnership has total capital of \$540,000. Prior to the admission of Schoen, each partner has a capital balance of \$180,000. Each partner relinquishes an equal amount of his capital balance to Schoen. The amount to be relinquished by Lagos is

a.\$30,000.

b.\$38,000.

c.\$45,000.

d.\$75,000.

a122.Jackson is admitted to a partnership with a 25% capital interest by a cash investment of \$360,000. If total capital of the partnership is \$1,560,000 before admitting Jackson, the bonus to Jackson is

a.\$120,000.

b.\$60,000.

c.\$180,000.

d.\$240,000.

a123.Elkins and Landry are partners who share income and losses in the ratio of 3:2, respectively. On August 31, their capital balances were: Elkins, \$140,000 and Landry, \$120,000. On that date, they agree to admit Neumark as a partner with a one-third capital interest. If Neumark invests \$100,000 in the partnership, what is Elkins’s capital balance after Neumark’s admittance?

a.\$120,000

b.\$126,667

c.\$128,000

d.\$140,000

a124.Elkins and Landry are partners who share income and losses in the ratio of 3:2, respectively. On August 31, their capital balances were: Elkins, \$140,000 and Landry, \$120,000. On that date, they agree to admit Neumark as a partner with a one-third capital interest. If Neumark invests \$160,000 in the partnership, what is Landry’s capital balance after Neumark’s admittance?

a.\$140,000

b.\$128,000

c.\$126,000

d.\$120,000

a125.Encisco and Ollinger are partners who share profits and losses equally and have capital balances of \$280,000 and \$245,000, respectively. Parks is admitted into the partnership by investing \$245,000 for a 30% capital interest. The account balance of Ollinger, Capital after the admission of Parks would be

a.\$231,000.

b.\$238,000.

c.\$252,000.

d.\$245,000.

a126.Rogers and Wissinger have partnership capital balances of \$576,000 and \$432,000, respectively. Wissinger negotiates to sell his partnership interest to Mergenthaler for \$504,000. Rogers agrees to accept Mergenthaler as a new partner. The partnership entry to record this transaction is

a.Cash504,000

b.Wissinger, Capital504,000

c.Cash72,000

d.Wissinger, Capital432,000

a127.Gable and Devito share partnership profits and losses in the ratio of 6:4. Gable’s Capital account balance is \$160,000 and Devito’s Capital account balance is \$100,000. Nance is admitted to the partnership by investing \$180,000 and is to receive a one-fourth ownership interest. Gable, Devito and Nance’s capital balances after Nance’s investment will be

a.\$160,000\$100,000\$180,000

b.\$202,000\$128,000\$110,000

c.\$198,000\$132,000\$110,000

d.\$195,000\$135,000\$110,000

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