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

question 2

Multiple Choice

Simonsen,Paulson,and Richardson are partners in a firm with the following capital account balances: $$\begin{array} { | l | l | } \hline \text { Simonsen } & \$ 40,000 \\\hline \text { Paulson } & 160,000 \\\hline \text { Richardson } & 120,000 \\\hline\end{array}$$ 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 31,2017.Paulson is paid $230,000 cash in full compensation for her capital account balance.Which of the following is TRUE of the journal entry prepared at the time of retirement? (Round the final answer to the nearest dollar.)

• A) Debit Paulson's capital account by $230,000.
• B) Debit Richardson's capital account by $35,000.
• C) Debit Simonsen's capital account by $23,333.
• D) Debit Income Summary by $70,000.

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Definitions:

Employee Performance

The evaluation of an employee's job related activities and their effectiveness in fulfilling their duties and responsibilities.

Career Planning

The ongoing process where individuals set career goals and develop strategies for achieving them, often involving education and training decisions.

Performance-management System

A framework used by an organization to monitor and evaluate the work performance of its employees, with the aim of improving efficiency and effectiveness.

Career-management System

A systematic process by which individuals develop and implement plans to achieve their occupational goals.