Total Partnership capital would increase by $46,000 D. Total Partnership capital
ID: 2456626 • Letter: T
Question
Total Partnership capital would increase by $46,000
D. Total Partnership capital would decrease by $50,000
1. Which of the following is NOT a right of stockholders A Unlimited liability B Vote at Stockholders meetings C Buy or sell stock D Receive dividends 2. Pamela and Penelope have a partnership agreement with the following conditions: Pamela receives $75,000 and Penelope receives $90,000 as annual salaries. Each partner is allowed an annual interest allowance of 10% of the beginning of year capital balance. Any remaining balance of income or loss is allocated equally. Beginning capital balances equal $800,000 for Pamela and $700,000 for Penelope. Net Income for 2005 is $400,000. The distribution of net income to the two partners is: Pamela Penelope A 75,000 90,000 B 80,000 70,000 C 155,000 160,000 D 197,500 202,500 3. On May 2, Stevens agrees to sell Edwards $100,000 of his partnership interest for $200,000 cash. A Steven's capital account will be credited for $100,000 B Steven's capital account will be credited for $200,000 C Edward's Capital account will be credited for $200,000 D Edward's Capital account will be credited for $100,000 4. Stevens & Edwards agree to add Philips to their parternship upon an investment of $100,000 in equipment A Total partnership capital will increase by $100,000 B Stevens & Edwards capital will decrease by $50,000 each C Stevens & Edwards capital will increase by $50,000 each D Total Assets will decrease by $100,000 5. Kat and Stevens agree to accept Nugent as a partner upon his investment of $50,000 cash. Nugent is to receive a 20% ownership interest in the new partnership. Any bonus is attributable to the existing partners and is shared equally. Kat and Stevens combined capital (before Nugents investment) totals $180,000. A Nugent's credit to Capital equals $50,000 B Nugent's credit to Capital equals $46,000 CTotal Partnership capital would increase by $46,000
D. Total Partnership capital would decrease by $50,000
6. A small stock dividend will: A Increase Common Stock Dividend Distributable B Increase the total stockholder's equity C Increase the par or stated value per share D Decrease total assetsExplanation / Answer
1) A unlimited liability is not the right of the The stockholders in corporations are only liable for the debts and obligations of the organization to the extent of their investments, and enjoy protection of personal assets.
2) D Pamela=197500 Penelope=202500
Note: There are multiple questions, please post one question at a time. I have answered two questions
Pamela Penelope Total($) Net Income 400000 Less: Annual salaries 75000 90000 165000 Less: Annual Interest 80000 70000 150000 Net Income after deducting salaries and interest. 85000 Net Income divided equally among partners 42500 42500 Total 197500 202500 400000