Masters,Hardy,and Rowen Are Dissolving Their Partnership

question 132

Multiple Choice

Masters,Hardy,and Rowen are dissolving their partnership.Their partnership agreement allocates income and losses equally among the partners.The current period's ending capital account balances are Masters,$15,000;Hardy,$15,000;Rowen,$30,000.After all the assets are sold and liabilities are paid,but before any contributions to cover any deficiencies,there is $54,000 in cash to be distributed.The general journal entry to record the final distribution would be:

• A)Debit Masters,Capital $18,000;debit Hardy,Capital $18,000;debit Rowen,Capital $18,000;credit Cash $54,000.
• B)Debit Masters,Capital $13,500;debit Hardy,Capital $13,500;debit Rowen,Capital $27,000;credit Cash $54,000.
• C)Debit Masters,Capital $15,000;debit Hardy,Capital $15,000;debit Rowen,Capital $30,000;credit Gain from Liquidation $6,000;credit Cash $54,000.
• D)Debit Cash $54,000;credit Rowen,Capital $13,500;credit Masters,Capital $13,500;credit Hardy,Capital $27,000.
• E)Debit Masters,Capital $15,000;debit Hardy,Capital $15,000;debit Rowen,Capital $30,000;credit Retained Earnings $6000;credit Cash $54,000.

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Definitions:

Least-Squares Fit

A method of estimating the parameters of a model by minimizing the sum of the squares of the differences between the observed and predicted values.

Pass%

The percentage of individuals or units that meet or exceed a defined benchmark or standard.

Standard Error

A measure of the statistical accuracy of an estimate, often used to quantify the uncertainty in the mean of a population estimated from a sample.

Pearson's Correlations

A measure of the linear correlation between two variables, ranging from -1 to 1, where 1 means a perfect positive linear correlation, and -1 means a perfect negative linear correlation.