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29.Kelly invests $40,000 for a 10 percent interest in a partnership that has total capital of $300,000 after admitting Kelly. Which of the following is true?a.Kelly's capital is $26,000b.The original partners' capital in the business was $270,000 before admitting Kellyc.Kelly received a bonus of $10,000d.The original partners received a bonus of $10,000ANS: D
30.Joan pays Eva $60,000 for her $40,000 interest in a partnership. The entry to record the sale on the partnership books is: 31.Nancy invests $60,000 for a one-fifth interest in a partnership in which the other partners have capital totaling $120,000 before admitting Nancy. After distribution of the bonus, Nancy's capital is32.Sennett invests $40,000 for a 20 percent interest in a partnership that has capital totaling $150,000 after admitting Sennett. Which of the following is true?33.W and X are partners who have agreed to admit Y, who will invest $15,000 for a 20 percent interest. The previous capital balances were $15,000 and $30,000 for W and X, respectively. W and X had shared profits and losses equally. What amount will be recorded in Y's Capital account?a.$6,000 creditb.$12,000 creditc.$15,000 creditd.$9,000 creditANS: B34.W and X are partners who have agreed to admit Y, who will invest $15,000 for a 20 percent interest. The previous capital balances were $15,000 and $30,000 for W and X, respectively. W and X had shared profits and losses equally. The entry that records Y’s admission to the partnership is:
35.Z has bought B's interest in the A&B Partnership for a $60,000 direct payment to B. The capital balances before the sale were $24,000 and $36,000, respectively. The entry to record the purchase of interest in partnership is:36.Avery and Bert are partners who share profits and losses in a ratio of 2:1 and have capital balances of $75,000 and $150,000, respectively. The partners agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35 percent interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is: