1.) On May 2, Stevens agrees to sell Edwards $100,000 of his partnership interes

ID: 2456744 • Letter: 1

Question

1.) On May 2, Stevens agrees to sell Edwards $100,000 of his partnership interest for $200,000 cash.

A. Steven's Capital account will be credited for $100,000

B. Steven's capital account will be credited for $200,000

C. Edward's Capital account will be credited for $200,000

D. Edward's Capital account will be credited for $100,000

2. Stevens & Edwards agree to add Philips to their partnership upon an investment of $100,000 in equipment

A. Total partnership capital will increase by $100,000

B. Stevens & Edwards capital will decrease by $50,000 each

C. Stevens & Edwards capital will increase by $50,000 each

D. Total assets will decrease by $100,000

1.) On May 2, Stevens agrees to sell Edwards $100,000 of his partnership interest for $200,000 cash.

Answer:

D. Edward's Capital account will be credited for $100,000

2. Stevens & Edwards agree to add Philips to their partnership upon an investment of $100,000 in equipment

Answer:

A. Total partnership capital will increase by $100,000

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