The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: Cash$90,000 Liabilities$60,000Noncash assets 300,000 Henry,capital 80,000 Isaac, capital 110,000 Jacobs, capital 140,000Total$390,000 Total$390,000??Estimated expenses of liquidation were $5,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4.?What amount of cash was available for safe payments, based on the above information?
A. $35,000.
B. $30,000.
C. $25,000.
D. $40,000.
E. $85,000.
Answer: C
You might also like to view...
Calculate the approximate relative market share of a company whose market share is 76%, while the market shares of its three largest competitors are 13%, 22%, and 26%
A) 125 B) 81 C) 150 D) 46 E) 27
The International Federation of Accountants says:"IT has grown (and will continue to grow) in importance at such a rapid pace and with such far reaching effects that it can no longer be considered a discipline peripheral to accounting. Rather, professional accounting has merged and developed with IT to such an extent that one can hardly conceive of accounting independent from IT."In your opinion, why is accounting now interdependent with IT?
What will be an ideal response?
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 $8000 D) credit to Income Summary for $20,000
Which of the following is not an example of obvious financial reporting frauds as discussed in the text?
A) Keeping the books open for a few days after the end of the reporting period. B) Transferring assets to an affiliate at more than their actual value. C) Recording as assets expenditures that should have been classified as expenses. D) Recording a liability when title to merchandise passes to the purchaser.