Table 12-8 Jimmy, Johnny, and Joey Are Partners in the 3J Company

question 136

Multiple Choice

Table 12-8
Jimmy, Johnny, and Joey are partners in the 3J Company sharing profits and losses equally. Joey has decided to leave the partnership. After all accounts have been updated, the capital balances of the partners are currently $90,000, $120,000, and $70,000, respectively.
-Refer to Table 12-8.Assume Joey takes $50,000 in cash and a promissory note for $20,000.The entry to record his withdrawal includes a:

• A) credit to Joey, Capital for $70,000
• B) debit to Joey, Capital for $50,000
• C) credit to Joey, Capital for $50,000
• D) debit to Joey, Capital for $70,000

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Definitions:

Team Performance

A measure of how well a group of individuals works together to achieve common goals.

Non-Routine

Tasks or activities that are unusual, unpredictable, or vary from the norm, requiring unique solutions and creative problem-solving.

Variety of Perspectives

The presence or consideration of diverse viewpoints and experiences in analysis, decision-making, or creativity.

Relationship Conflict

Disagreements and clashes between individuals due to personal issues, values, or emotions rather than task or work-related issues.