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Problem - Gloria is a 30 percent general partner in the VH Partnership. During the year, VH borrows $40,000 from a bank to fund operations and is able to pay back $10,000 before year-end. VH also borrows $100,000 from Gloria's wealthy retired uncle on a non-recourse basis using land held by the partnership as the collateral. How much does Gloria's at-risk amount increase or decrease as a result of these transactions?
a. $9,000 increase
b. $30,000 decrease
c. $12,000 increase
d. $42,000 increase
e. $42,000 decrease
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Problem - Recording Adjusting Entries. Prepare the adjusting entries that should be recorded for Lamar at November 30, 2019
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