After closing the temporary owners' equity accounts into Income Summary, and after allocating the net income and closing the partners' drawing accounts, assume the partners' capital accounts had credit balances as follows: Yang, $20,000; Wolfe, $30,000; Stamatis, $45,000 . Partners share profits and losses as follows: Yang, 20%; Wolfe, 30%; and Stamatis, 50%. If Yang purchased Stamatis's interest
in the partnership for $40,000 cash, the amount entered in Yang's capital account is a
a. $5,000 debit.
b. $40,000 debit.
c. $40,000 credit.
d. $45,000 credit.
d
Business
You might also like to view...
"League think" is the concept
A. introduced by Pete Rozelle that owners needed to do what was best for the NFL as a whole, as opposed to their individual franchises. B. of thinking of the league as a single entity structure. C. of creating a league "think tank" of owners to make leaguewide decisions and set league strategies. D. None of these are correct.
Business
A survey would do all of the following except
A) establish boundaries. B) create legal description. C) reveal an illegal use such as a commercial use in a residential zone. D) find encroachments.
Business