Floyd and Merriam Start a Partnership Business on June 12,2019

question 139

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:

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?

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Definitions:

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation, that can be tested through experimentation and observation.

Casual Impressions

Refers to the informal and intuitive judgments we make about others.

Correlation Coefficients

Statistical measures expressing the extent to which two variables move in relation to each other, ranging from -1 to 1.

Consistent Increase

A steady and continuous rise in quantity, size, number, or extent over a period of time.