Reference no: EM132727666

Questions -

Q1. On December 31, 2020, Lucio Ting decided to withdraw from the partnership Ting, Tan, Velayo Partnership. Lucio Ting has a capital balance of $80,000 and the withdrawal is paid from the partnership assets. What is the entry to record the transaction?

a. Debit Cash $80,000, Credit Ting, Capital $80,000

b. Debit Income Summary $80,000, Credit Ting, Capital $80,000

c. Debit Ting, Capital $80,000, Credit Cash $80,000

d. Debit Cash $80,000, Credit Income Summary $80,000

Q2. On January 1, 2020, Lala Norman and Dede McGill decided to form a partnership. Assets of Dede includes Accounts Receivable amounting to $18,000 and an Allowance for Doubtful Accounts of $2,000. An independent appraiser determined that the allowance for doubtful accounts should be $3,000. How much should the Accounts Receivable be carried in the new partnership books?

a. $18,000

b. $16,000

c. $15,000

d. $20,000

Q3. During partnership liquidation, if net assets worth $400,000 are sold for $325,000, what happens to the partner's capital accounts?

a. A $325,000 loss will decrease the capital accounts of the partners

b. A $325,000 gain will increase the capital accounts of the partners

c. A $75,000 loss will decrease the capital accounts of the partners

d. A $75,000 gain will increase the capital accounts of the partners

Q4. Which of the following is/are true?

a. When cash dividend is declared, there is an increase in value and decrease in quantity of common shares.

b. Stock Dividend Distributable is a liability account.

c. Dividends Payable is a Noncurrent Liability acoount.

d. Stock Dividend would cause no changes in Shareholders' Equity

Q5. On January 10, 2020, the board of directors of Casio Corporation declares a 3 for 1 stock split. This would result to which of the following;

a. None of the above

b. Shareholders' Equity remain the same

c. Shareholders' Equity will decrease

d. Sahreholders' Equity will increase