Arlene, Brad, and Chick are partners, sharing income 2:1:2. After selling all of

Question

Arlene, Brad, and Chick are partners, sharing income 2:1:2. After selling all of the assets for cash, dividing gains and losses on realization, and paying liabilities, the balances in the capital accounts are as follows! Arlene, $10,000 Cr; Brad, $10,000 Cr; and Chick, $30,000 Cr. How much cash should be distributed to Arlene? $6,000 $20,000 $10,000 $16,667 If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000. Common Stock will be credited for $140,000. Paid-In Capital in Excess of Par will be credited for $20,000. Paid-in Capital in Excess of Par will be credited for $120,000. Cash will be debited for $120,000. Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney's bill of $40,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting Legal Expense for $10,000. Legal Expense for $40,000. Research Expense for $10,000. Payroll Tax Expense for $40,000.

Explanation / Answer

Ans 7 c 1,3,2,4 First all the liabilities are paid than the non cash assets are sold and than gain or loss is distributed and finally remaining cash is distributed Ans 8 Capital In the ratio of 2:1:2 Arlene 10000 20000 Brad 10000 10000 Chick 30000 20000 Total 50000 Ans c $10000 ($20000-10000) Ans 9 Entry Dr Cr Cash 140000 Common stock (4000*5) 20000 paid in capital in excess of par 120000 (140000-20000) Ans C paid in capital in excess of par will be credited by $120000 Ans 10 Entry Dr Cr Legal Expenses 40000 Common stock (2000*5) 10000 paid in capital in excess of par 30000 (40000-10000) b) legal expneses by $40000 Dear student Q5,6 are blurred so not able to view properly Rest all the questions I have answered

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