Sam, Bart, and Lex Are Dissolving Their Partnership

question 11

Multiple Choice

Sam, Bart, and Lex are dissolving their partnership. Their partnership agreement allocates each partner 1/3 of all income and losses. The current period's ending capital account balances are Sam, $45,000; Bart, $37,000; and Lex, $(5,000) . After all assets are sold and liabilities are paid, there is $77,000 in cash to be distributed. Lex is unable to pay the deficiency. The journal entry to record the distribution should be:

• A) Debit Sam, Capital $25,667; debit Bart, Capital $25,667; debit Lex, Capital $25,666; credit Cash $77,000.
• B) Debit Sam, Capital $42,500; debit Bart, Capital $34,500; credit Cash $77,000.
• C) Debit Sam, Capital $45,000; debit Bart, Capital $37,000; credit Lex, Capital $5,000; credit Cash $77,000.
• D) Debit Cash $77,000, debit Lex, Capital $5,000, credit Sam, Capital $45,000, credit Bart, Capital $37,000.
• E) Debit Cash $77,000; credit Sam, Capital $25,667; credit Bart, Capital $25,667; credit Lex, Capital $25,666.

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Definitions:

Healthy Meal

A meal that provides essential nutrients, adheres to dietary guidelines, and promotes overall health.

Attitudes

Pertains to individuals' settled ways of thinking or feeling about something, often reflected in their behavior.

Subjective Norms

Beliefs about what others think one should do, which can influence personal behavior.

Theory of Planned Behavior

A theory which suggests that an individual's behavior is directly influenced by their intention to perform the behavior, which in turn is affected by their attitude towards the behavior, the subjective norms, and their perceived behavioral control.