1. Tomas and Saturn are partners who share income in the ratio of 3:1. Their cap
ID: 2406155 • Letter: 1
Question
1. Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $93,600 and $91,300, respectively. The partnership generated net income of $41,400. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?
a.$139,390
b.$124,650
c.$119,172
d.$130,463
2. Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $80,000 and $120,000, respectively. The partnership generated net income of $30,000. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?
a.$22,500
b.$102,500
c.$127,500
d.$57,500
3. Hannah Johnson contributed equipment, inventory, and $43,900 cash to a partnership. The equipment had a book value of $29,000 and a market value of $34,200. The inventory had a book value of $47,300 but only had a market value of $19,400 due to obsolescence. The partnership also assumed a $15,000 note payable owed by Hannah that was originally used to purchase the equipment.
What amount should be recorded to Hannah's capital account?
a.$125,400
b.$105,200
c.$82,500
d.$112,500
4. Henry Jones contributed equipment, inventory, and $44,000 cash to a partnership. The equipment had a book value of $35,000 and market value of $28,000. The inventory had a book value of $25,000 but only had a market value of $12,000 due to obsolescence. The partnership also assumed a $15,000 note payable owed by Henry that was originally used to purchase the equipment.
What amount should be recorded to Henry's capital account?
a.$69,000
b.$84,000
c.$104,000
d.$89,000
5. Sandra and Kelsey are forming a partnership. Sandra will invest a piece of equipment with a book value of $7,500 and a fair market value of $18,000. Kelsey will invest a building with a book value of $40,000 and a fair market value of $44,000.
What amount will be recorded to Sandra's capital account?
a.$7,500
b.$18,000
c.$10,500
d.$25,500
Explanation / Answer
1. (b) $124,650
Tomas's capital = $93,600 + ($41,400 x 3/4) = $124,650
2. (b) $102,500
Tomas's capital = $80,000 + ($30,000 x 3/4) = $102,500
3. (c) $82,500
Hannah's capital account = $43,900 + $34,200 + $19,400 - $15,000 = $82,500
4. (a) $69,000
Henry's capital account = $44,000 + $28,000 + $12,000 - $15,000 = $69,000
5. (b) $18,000
Sandra's capital account = $18,000 fair market value of equipment will be recorded
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