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

question 72

Multiple Choice

Simonsen,Paulson,and Richardson are partners in a firm with the following capital account balances:

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?

• 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:

Export Supply Curves

Graphical representations showing the relationship between the price of goods in the international market and the quantity of those goods a country is willing to supply for export.

Domestic Quantity Supplied

The total amount of a good or service that is provided within a country's borders during a specific time period.

Domestic Quantity Demanded

The total amount of a product or service that consumers in a particular country are willing and able to purchase at a given price.

World Price

The international market price of a good or service, determined by global supply and demand dynamics.