Floyd and Merriam Start a Partnership Business on June 12

question 104

Multiple Choice

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: Floyd agrees to sell off half of his share to Ramelow in exchange for $30,000 cash. Which of the following is the correct journal entry in the books of the firm for the above transfer of interest?

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Definitions:

Elements

Elements are fundamental components or substances that cannot be broken down into simpler forms by chemical means.

Scientific Theories

Well-substantiated explanations of some aspect of the natural world, based on a body of empirical evidence and subjected to the scientific method.

Ever-living Fire

In Heraclitean philosophy, it symbolizes the fundamental principle of the universe, denoting change and the dynamic process of becoming.

Basic Nature

The fundamental qualities or characteristics inherent in something or someone, often considered innate or essential.