Practice Test Ch12

Practice Test Ch12 - Chap 12 Acctg202 1. Collins and Farina...

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Chap 12 Acctg202 1. Collins and Farina are forming a partnership. Collins is investing a building that has a market value of $80,000. However, the building carries a $56,000 mortgage that will be assumed by the partnership. Farina is investing $20,000 cash. The balance of Collins' Capital account will be: A $80,000. B $24,000. C $60,000. D $56,000. E $44,000. 2. When a partner is unable to pay a capital deficiency: A The partner must take out a loan to cover the deficient balance B The deficiency is absorbed by the remaining partners. C The partnership ends. D The deficient partner has a personal liability to pay the deficiency. E Both b and d. 3. A partnership recorded the following journal entry: This entry reflects: A Additional investment into the partnership by Tanner and Jackson. B Withdrawal of $10,000 each by Tanner and Jackson upon the admission of a new partner. C Addition of a partner who pays a bonus to each of the other partners. D Acceptance of a new partner who invests $70,000 and receives a $20,000 bonus. E
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Practice Test Ch12 - Chap 12 Acctg202 1. Collins and Farina...

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