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: Sanchez, $20,000; Dorvinsky, $30,000; Davenport, $45,000 . Partners share profits and losses as follows: Sanchez, 20%; Dorvinsky, 30%; and Davenport, 50%. If Davenport retired
and withdrew $40,000 in settlement of his/her equity and settlements are allocated according to capital interests, the amount entered in Dorvinsky's capital account would be a
a. $2,000 credit.
b. $2,000 debit.
c. $3,000 credit.
d. $3,000 debit.
c
You might also like to view...
________ marketing refers to the normal work of preparing, pricing, distributing, and promoting the service to customers
A) Interactive B) Internal C) External D) Promotional E) Direct
Individuals who are living or personifying the desired change in an organization should be acknowledged through stories and awards. Which of Kotter’s Steps does this illustrate?
a. create a sense of urgency b. form a powerful coalition c. remove obstacles d. create short-term wins
She has ________ that dress to several weddings
A) worn B) wore C) weared
A company's relative mix of debt and equity financing is referred to as its ____________________
Fill in the blank(s) with correct word