Please answer these short review questions.
29) Andre, Beau, and Caroline share profits and losses of their partnership in a 3:3:7 ratio respectively. If the net income is $900,000, calculate Caroline's share of the profits. (Do not round any intermediate calculations.) A) $207,692 B) $484,615 C) $161,538 D) $69,231. E None of the above
30) Bob and Bill allocate 2/3 of their partnership's profits and losses to Bob and 1/3 to Bill. The net income of the firm is $20,000. The journal entry to close the Income Summary will include. (Do not round any intermediate calculations.)
A) credit to Income Summary for $13,333
B) debit to Bob, Capital for $6,667 C) credit to Bob, Capital for $13,333 D) credit to Income Summary for $20,000; E None of the above
31) Felix and Ian allocate 2/5 of their partnership's profits and losses to Felix and 3/5 to Ian. The net income of the firm is $20,000. The journal entry to close the Income Summary will include A) credit to Ian, Capital for $12,000 B) debit to Felix, Capital for $12,000 C) debit to Felix, Capital for $8,000 D) credit to Income Summary for $20,000; E) None of the above
32) Adam, Bill, and Charlie are partners. The profit and loss sharing rule between them is 4:6:1, with Bill receiving the largest share and Charlie receiving the smallest. The partnership incurs a net loss of $72,000. While closing the Income Summary -. (Do not round any intermediate calculations.) A) Income Summary will be debited for $72,000 B) Adam, Capital will be debited for $26,182 C) Adam, Capital will be credited for $39,273 D) Charlie, Capital will be credited for $39,273 E) None of the above
33) When a new partner is admitted to a partnership by purchasing an existing partner's interest, the business's accounting records do not record the transfer of cash from the new partner to the existing partner. A. True B. False
34) Admission of a new partner, by contributing directly to the partnership, increases both assets and liabilities by the same amount. A. True B. False
