Table 12-5 Jim and Joe Are Partners Agreeing to Share Profits and Profits

question 9

Multiple Choice

Table 12-5
Jim and Joe are partners agreeing to share profits and losses in a 2:6 ratio, respectively. Business has been profitable and they have decided to admit Jewel to the partnership for a cash investment. The balances in Jim and Joe's capital accounts are presently $240,000 and $260,000, respectively.
-Refer to Table 12-5.If Jewel is given a 25% interest in the partnership in exchange for $200,000,the entry to record her investment includes a:

• A) credit to Jim, Capital for $6,250
• B) debit to Joe, Capital for $18,750
• C) credit to Jewel, Capital for $200,000
• D) debit to Jewel, Capital for $175,000

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Definitions:

Hematoma

A localized collection of blood outside of blood vessels, usually in liquid form within the tissue.

Infiltrated IV Line

A complication where IV fluid leaks into the surrounding tissue instead of the vein, often causing swelling, pain, and bruising.

Data Entry Errors

Mistakes made during the input of data into a computer system or database, which can compromise the integrity of the data.

Confidentiality

The practice of keeping sensitive information secret, especially in healthcare, to protect patient privacy.