Simonsen,Paulson,and Richardson Are Partners in a Firm with the Following

question 23

Multiple Choice

Simonsen,Paulson,and Richardson are partners in a firm with the following capital account balances: $$\begin{array} { | l | r | } \hline \text { Simonsen } & \$ 60,000 \\\hline \text { Paulson } & 170,000 \\\hline \text { Richardson } & 90,000 \\\hline\end{array}$$ The profit-and-loss-sharing ratio among Simonsen,Paulson,and Richardson is 1:3:2,in the order given.Paulson is retiring from the partnership on December 31,2018.Paulson's capital account is settled at book value.Which of the following journal entries would the firm record for Paulson's withdrawal?

• A) \[\begin{array} { | c | r | l | }
• \hline \text { Paulson, Capital } & 170,000 & \\
• \hline \text { Cash } & & 170,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | r | r | }
• \hline \text { Paulson, Capital } & 170,000 & \\
• \hline \text { Cash } & & 110,000 \\
• \hline \text { Simonsen, Capital } & & 20,000 \\
• \hline \text { Richardson, Capital } & & 40,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | l | }
• \hline \text { Cash } & 170,000 & \\
• \hline \text { Paulson, Capital } & & 170,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | r | r | }
• \hline \text { Paulson, Capital } & 170,000 & \\
• \hline \text { Simonsen, Capital } & 60,000 & \\
• \hline \text { Richardson, Capital } & 90,000 & \\
• \hline \text { Cash } & & 320,000 \\
• \hline
• \end{array}\]

Demonstrate the ability to prepare and analyze job cost sheets for tracking direct materials, direct labor, and applied overhead costs.

Understand the process of applying factory overhead to jobs using predetermined rates based on direct labor, direct material, or other bases.

Develop skills in the preparation of journal entries related to the job order cost accounting cycle, including transactions for materials, labor, overhead, and the sale of completed jobs.

Learn to compute and adjust for over- or underapplied overhead and its implications on financial reporting.

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Definitions:

Federal Loans

Government-issued loans intended to cover education costs for students, typically coming with fixed interest rates and specific repayment terms.

Credit Card Responsibility and Disclosure Act

U.S. federal legislation aimed at protecting consumers by making credit card agreements more transparent and limiting certain fees and interest rates.

Independent Income

Earnings obtained from sources other than traditional employment, such as investments, royalties, or business ventures, providing financial autonomy.

Co-signer

An individual who agrees to be equally responsible for repaying a loan or debt if the primary borrower fails to make payments.