Keith and Jim Are Partners

question 45

Multiple Choice

Keith and Jim are partners.Keith has a capital balance of $47,000 and Jim has a capital balance of $32,000.Jim sells $15,000 of his ownership to Bill.Which of the following is TRUE of the journal entry to admit Bill?

• A) Bill, Capital will be debited for $17,000.
• B) Jim, Capital will be debited for $17,000.
• C) Jim, Capital will be credited for $15,000.
• D) Bill, Capital will be credited for $15,000.

Analyze and adjust for unearned and earned fees.

Construct journal entries for adjusting purposes in various accounting scenarios.

Understand and describe the sequence and significance of preparing financial statements in accounting.

Identify and differentiate between the types of accounts contained in an adjusted trial balance.

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Definitions:

Maturity Value

The amount payable to an investor at the maturity date of an investment, including the principal and any remaining interest.

Maker

The party in a financial transaction who creates or issues the instrument, such as a check writer or bond issuer.

General Ledger

A comprehensive record of all financial transactions over the life of a company, serving as the primary source of data for financial reporting.

Notes Receivable

A claim or promissory note that provides evidence of a debt due to the holder from a debtor with specified terms of repayment.