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.

---

Definitions:

Colloquial Word

Informal language or expressions not usually found in formal writing, often specific to a particular geographical area or social group.

Two-Word Verb

A verb phrase consisting of a main verb and a second element (such as a preposition or adverb) working together to function as a single verb.

Slang Words

Informal, nonstandard words or phrases that are often specific to a particular social group or culture.

Colloquial Expressions

Phrases or sayings that are informal and commonly used in everyday conversation within specific groups or regions.