McCartney,Harris and Hussin Are Dissolving Their Partnership B) C) D)

question 51

Multiple Choice

McCartney,Harris and Hussin are dissolving their partnership.Their partnership agreement allocates each partner 1/3 of all income and losses.The current period's ending capital account balances are McCartney,$13,000; Harris,$13,000; and Hussin,$(2,000) .After all assets are sold and liabilities are paid,there is $24,000 in cash to be distributed.Hussin is unable to pay the deficiency.The journal entry to record the distribution should be:

• A)
• \(\begin{array}{|l|c|c|}
• \hline \text { McCartney, Capital. } & 8,000 \\
• \hline \text { Harris, Capital. } & 8,000 \\
• \hline \text { Hussin, Capital. } & 8,000 \\
• \hline \text { Cash. } &&24,000 \\
• \hline
• \end{array}\)
• B)
• \(\begin{array}{|l|c|c|}
• \hline \text { McCartney, Capital. } & 12,000 \\
• \hline \text { Harris, Capital. } & 12,000 \\
• \hline\text { Cash }&&24,000\\
• \hline
• \end{array}\)
• C)
• \(\begin{array}{|l|c|c|c|}
• \hline \text { McCartney, Capital. } & 13,000 & \\
• \hline \text { Harris, Capital. } & 13,000 & \\
• \hline \text { Hussin, Capital. } & & 2,000 \\
• \hline \text { Cash. } & & 24,000 \\
• \hline
• \end{array}\)
• D)
• \(\begin{array}{|l|c|c|}
• \hline \text { Cash. } & 24,000 & \\
• \hline \text { Hussin, Capital. } & 2,000 & \\
• \hline \text { McCartney, Capital. } & & 13,000 \\
• \hline \text { Harris, Capital. } & & 13,000 \\
• \hline
• \end{array}\)
• E)
• \(\begin{array}{|c|c|c|}
• \hline \text { Cash. } & 24,000 & \\
• \hline \text { McCartney, Capital. } & & 8,000 \\
• \hline \text { Harris, Capital } & & 8,000 \\
• \hline \text { Hussin, Capital. } & & 8,000 \\
• \hline
• \end{array}\)

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Definitions:

Ocean-Continent Convergent Boundary

A plate-tectonic boundary where an oceanic plate converges with a continental plate, generally expressed by subduction of the oceanic plate beneath the continent.

Flexing

The act of bending or tensing a material or muscle, often referring to the way earth's crust might bend under certain geological forces.

Thinning of the Lithosphere

The reduction in thickness of the lithosphere, often occurring in response to tectonic processes such as stretching and rifting.

Normal Faulting

A type of faulting where the hanging wall block moves down relative to the footwall block, typically associated with extensional tectonic environments.