Wright,Bell,and Edison Are Partners and Share Income in a 2:5:3

question 94

Multiple Choice

Wright,Bell,and Edison are partners and share income in a 2:5:3 ratio.The partnership's capital balances are as follows: Wright,$33,000,Bell $27,000 and Edison $40,000.Edison decides to withdraw from the partnership,and the partners agree not to revalue the assets upon Edison's retirement.The journal entry to record Edison's June 1 withdrawal from the partnership if Edison sells his interest to Whitney for $45,000 after the other two partners approve Whitney as partner is:

• A)Debit Edison,Capital $45,000;credit Whitney,Capital $45,000.
• B)Debit Edison,Capital $40,000;credit Cash $40,000.
• C)Debit Edison,Capital $40,000;debit Wright,Capital $2,500;debit Bell,Capital $2,500;credit Whitney,Capital $45,000.
• D)Debit Edison,Capital $40,000;credit Whitney,Capital $40,000.
• E)Debit Edison,Capital $40,000;debit Cash $5,000;credit Whitney,Capital $45,000.

---

Definitions:

Wilhelm Wundt

A German psychologist who is considered the father of experimental psychology; he established the first psychology laboratory.

Research Method

Systematic procedures or strategies used by scientists and scholars to gather, analyze, and interpret data in order to draw conclusions or solve problems.

Psychological Topic

A subject or area of study within the field of psychology, such as memory, behavior, or mental health.

Argument By Anecdote

A method of argument where personal stories or anecdotes are used as evidence, often overlooking statistical or scientific evidence.