Floyd and Merriam Start a Partnership Business on June 12,2019 $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 54,000 \\\hline \text { Merriam } & 22,000 \\\hline\end{array}$$

question 76

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: $$\begin{array} { | l | r | } \hline \text { Floyd } & \$ 54,000 \\\hline \text { Merriam } & 22,000 \\\hline\end{array}$$ Floyd agrees to sell half of his share to Ramelow in exchange for $32,000 cash.Which of the following is the correct journal entry in the books of the firm for the above transfer of interest?

• A) \[\begin{array} { |l | c | c | }
• \hline \text { Cash } & 32,000 & \\
• \hline \text { Ramelow, Capital } & & 32,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | c | c | }
• \hline \text { Floyd, Capital } & 27,000 & \\
• \hline \text { Ramelow, Capital } & & 27,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | c | c | }
• \hline \text { Cash } & 32,000 & \\
• \hline \text { Floyd, Capital } & 27,000 & \\
• \hline \text { Ramelow, Capital } & & 59,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Cash } & 32,000 & \\
• \hline \text { Floyd, Capital } & & 5000 \\
• \hline \text { Ramelow, Capital } & & 27,000 \\
• \hline
• \end{array}\]

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Definitions:

Quantifier

In logic, symbols that specify how many objects in the universe of discourse satisfy a given condition.

Atomic Open Sentence

An expression containing a variable that becomes either true or false when a value is substituted for the variable.

Compound

A substance formed from two or more elements chemically united in fixed proportions, or a complex entity composed of several parts.

Atomic

In the context of logic, atomic refers to propositions that cannot be broken down into simpler components, functioning as the basic, indivisible units of meaning.