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

question 11

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 is paid $40,000 for his equity is:

• A)Debit Edison,Capital $40,000;credit Cash $40,000.
• B)Debit Wright,Capital $20,000;Debit Bell,Capital $20,000;credit Cash $40,000.
• C)Debit Wright,Capital $20,000;Debit Bell,Capital $20,000;credit Edison,Capital $40,000.
• D)Debit Edison,Capital $40,000;credit Wright,Capital $20,000;credit Bell,Capital $20,000.
• E)Debit Cash $40,000;credit Edison,Capital $40,000.

---

Definitions:

Test Statistic

A standardized value that is calculated from sample data during a hypothesis test. It's used to determine whether to reject the null hypothesis.

Two-tail Test

A statistical test where the critical area of a distribution is two-sided and tests whether a sample is greater than or less than a certain range of values.

Sample Variances

A measure of the dispersion or variability within a sample data set, calculated as the sum of squared deviations from the mean, divided by the number of observations minus one.

Sample Sizes

The number of observations or datapoints collected in a sample, which can affect the accuracy and reliability of statistical analyses.