1. Tomas and Saturn are partners who share income in the ratio of 3:1. Their cap
ID: 2406138 • Letter: 1
Question
1. Tomas and Saturn are partners who share income in the ratio of 3:1. Their capital balances are $83,600 and $38,300, respectively. The partnership generated net income of $40,800. What is Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?
a.$118,530
b.$108,788
c.$129,157
d.$114,200
2. 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 Tomas's capital balance after closing the revenue and expense accounts to the capital accounts?
a.$127,500
b.$57,500
c.$22,500
d.$102,500
3. Hannah Johnson contributed equipment, inventory, and $40,100 cash to a partnership. The equipment had a book value of $28,800 and a market value of $35,900. The inventory had a book value of $46,300 but only had a market value of $11,000 due to obsolescence. The partnership also assumed a $16,900 note payable owed by Hannah that was originally used to purchase the equipment.
What amount should be recorded to Hannah's capital account?
a.$70,100
b.$98,300
c.$122,300
d.$103,900
4. John Prado and Ayana Nicks formed a partnership, dividing income as follows:
Annual salary allowance to Prado, $10,000 and Nicks, $28,000.
Interest of 5% on each partner's capital balance on January 1.
Any remaining net income divided equally.
Prado and Nicks had $20,000 and $50,000, respectively, in their January 1 capital balances. Net income for the year was $30,000.
Required:
How much net income should be distributed to Prado and Nicks?
Prado: $
Nicks: $
Explanation / Answer
1ans) d.$114,200
Tomas's capital balance after closing the revenue and expense accounts to the capital accounts
?=open ing capital+share of net income
=83600+(40,800*3/4)
? =$114,200?
2 ans)d.$102,500
Tomas's capital balance after closing the revenue and expense accounts to the capital account
?=open ing capital+share of net income
? =80000+(30000*3/4)
=102500$
3 ans)a.$70,100
amount should be recorded to Hannah's capital account
4 ans)net income should be distributed to Prado and Nicks
Prado: $7895
Nicks: $22105
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