Raul and Bianca Are Partners

question 158

Multiple Choice

Raul and Bianca are partners. Raul has a capital balance of $50,000 and Bianca has a capital balance of $36,000. Bianca sells half of her ownership interest to Bill and Bianca accepts $20,000 from Bill. Which of the following is true of the journal entry to record this transaction?

• A)Bianca, Capital is credited for $20,000 and Raul, Capital is debited for $18,000.
• B)Bill, Capital is credited for $18,000 and Raul, Capital is debited for $20,000.
• C)Bill, Capital is credited for $18,000 and Bianca, Capital is debited for $18,000.
• D)Bianca, Capital is credited for $20,000 and Raul, Capital is debited for $20,000.

Understand the structure and characteristics of corporations.

Identify the roles and responsibilities of a corporation's board of directors and officers.

Comprehend the concepts of paid-in capital, retained earnings, and stockholders' equity.

Acknowledge the public availability of corporate documents such as the charter and articles of incorporation.

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Definitions:

Menstrual Cycle

Series of changes that occur in sexually mature, nonpregnant women and result in menses. Specifically refers to the uterine cycle but is often used to include both the uterine and ovarian cycles.

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The release of an egg (ovum) from the ovary, typically occurring midway through the menstrual cycle.

Pap Test

A screening procedure for cervical cancer that involves collecting cells from the cervix and examining them under a microscope to detect abnormalities.

Cervical Cancer

A malignant tumor of the cervix, the lower part of the uterus, often caused by the human papillomavirus (HPV).