Question

Abby and Bailey are partners who share income in the ratio of 2:1 and have capital...

Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $69,100 and $30,600, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $43,400. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?

a.$30,600

b.$43,400

c.$34,550

d.$69,100

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer:

Option c is correct. i.e $34,550.

Abby's capital account is 69,100. She sells half of her interest, which is $34,550. The amount actually paid for her interest is not recorded by the partnership.

Add a comment
Know the answer?
Add Answer to:
Abby and Bailey are partners who share income in the ratio of 2:1 and have capital...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry...

    Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $188,500 and $135,600, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry's interest for $43,400 and one-fourth of Chou's interest for $29,800. Clarke contributes $46,000 cash to the partnership, for which she is to receive an ownership equity of $46,000. al. Journalize the entry to record the admission of...

  • Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances...

    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 Saturn's capital balance after closing the revenue and expense accounts to the capital accounts? Oa. $112,500 b. $102,500 Oc. $127,500 Od. $120,000

  • Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances...

    Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $93,900 and $39,100, respectively, The partnership generated net income of $45,500. What is Tomas's capital balance after dosing the revenue and expense accounts to the capital accounts? O a. $122,861 b. $133,567 ОС. $142,921 Od. $128,025

  • Tucker and Titus are partners who share income in the ratio of 3:1. Their capital balances...

    Tucker and Titus are partners who share income in the ratio of 3:1. Their capital balances are $31,300 and $77,100, respectively. The partnership generated net income of $42,900 for the year. What is Tucker's capital balance after closing the revenue and expense accounts to the capital accounts? a. $50,780 b. $76,170 ОС. $38,085 Od. $63,475

  • Tucker and Titus are partners who share income in the ratio of 3:1. Their capital balances...

    Tucker and Titus are partners who share income in the ratio of 3:1. Their capital balances are $32,700 and $61,900, respectively. The partnership generated net income of $41,800 for the year. What is Tucker's capital balance after closing the revenue and expense accounts to the capital accounts? Oa. $76,860 Ob. $38,430 Oc. $51,240 Od. $64,050

  • Myles Etter and Crystal Santori are partners who share in the income equally and have capital...

    Myles Etter and Crystal Santori are partners who share in the income equally and have capital balances of 171,000 and 72,000, respectively. Etter, with the consent of Santori, Sells one-third of her interest to Lonnie Davis. A) what entry is required by the partnership if sales price is $50,000? B) what entry is required by the partnership if the sales price is $70,000? Please ignore checks and x’s... a. What entry is required by the partnership if the sales price...

  • Allocation of Income for Partners. Determine each partner's share and make the appropriate general journal entry...

    Allocation of Income for Partners. Determine each partner's share and make the appropriate general journal entry to close the Income Summary account to the capital accounts. Khalid, Dina, and James are partners with beginning-year capital balances of $400,000, $320,000, and $160,000, respectively. The partners agreed to share income and loss as follows: Salary of $30,000 to Khalid, $50,000 to Dina, and $55,000 to James. An interest allowance of 10% on beginning-of-the year capital balances. Any remaining balance is to be...

  • Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $51,000 and $75,000,...

    Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $51,000 and $75,000, respectively, at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $60,500. What amount of loss on realization should be allocated to Soledad? a. $8,188 b. $65,500 c. $19,650 d. $16,375

  • Soledad and Winston are partners who share income in the ratio of 1:3 and have capital...

    Soledad and Winston are partners who share income in the ratio of 1:3 and have capital balances of $51,300 and $72,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $65,500. What amount of loss on realization should be allocated to Winston? a.$14,450 b.$28,900 c.$57,800 d.$43,350

  • Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry...

    Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $177,000 and $127,600, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $40,700 and one-fourth of Chou’s interest for $28,100. Clarke contributes $43,200 cash to the partnership, for which she is to receive an ownership equity of $43,200. a1. Journalize the entry to record the admission of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT