Peters,Chong,and Aaron Are Dissolving Their Partnership

question 91

Multiple Choice

Peters,Chong,and Aaron are dissolving their partnership.Their partnership agreement allocates each partner an equal share of all income and losses.The current period's ending capital account balances are Peters,$54,000;Chong,$42,000;and Aaron,$(2,000) .After all assets are sold and liabilities are paid,there is $94,000 in cash to be distributed.Aaron is unable to pay the deficiency.The journal entry to record the distribution should be:

• A)Debit Peters,Capital $54,000;debit Chong,Capital $40,000;credit Cash $94,000.
• B)Debit Peters,Capital $54,000;debit Chong,Capital $42,000;credit Cash $96,000.
• C)Debit Peters,Capital $53,000;debit Chong,Capital $41,000;credit Cash $94,000.
• D)Debit Cash $94,000,debit Aaron,Capital $2,000,credit Peters,Capital $54,000,credit Chong,Capital $42,000.
• E)Debit Cash $94,000;credit Peters,Capital $47,000;credit Chong,Capital $47,000.

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Definitions:

Menstrual Cycle

A recurring cycle in women and female primates where the lining of the uterus is prepared for pregnancy and, if pregnancy does not occur, shed through menstruation.

LH Secretion

The release of Luteinizing Hormone from the anterior pituitary gland, crucial for reproductive processes.

Uterine Wall

The muscular layer of the uterus, which expands during pregnancy and contracts during childbirth.

Estrogen Production

The synthesis of estrogen hormones, primarily by the ovaries, which play key roles in female reproductive health and secondary sexual characteristics.