Peters,Chong,and Aaron Are Dissolving Their Partnership

question 91

Multiple Choice

Peters,Chong,and Aaron are dissolving their partnership.Their partnership agreement allocates each partner an equal share of all income and losses.The current period's ending capital account balances are Peters,$54,000;Chong,$42,000;and Aaron,$(2,000) .After all assets are sold and liabilities are paid,there is $94,000 in cash to be distributed.Aaron is unable to pay the deficiency.The journal entry to record the distribution should be:

• A)Debit Peters,Capital $54,000;debit Chong,Capital $40,000;credit Cash $94,000.
• B)Debit Peters,Capital $54,000;debit Chong,Capital $42,000;credit Cash $96,000.
• C)Debit Peters,Capital $53,000;debit Chong,Capital $41,000;credit Cash $94,000.
• D)Debit Cash $94,000,debit Aaron,Capital $2,000,credit Peters,Capital $54,000,credit Chong,Capital $42,000.
• E)Debit Cash $94,000;credit Peters,Capital $47,000;credit Chong,Capital $47,000.

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Definitions:

Material Handling

The coordination of material and product flow, safeguarding, storage, and oversight from production, through warehousing and distribution, to the point of use and final disposal.

Obsolescence

The process of a product or technology becoming outdated or no longer used, often due to advancements in the field.

Toyota Production System

An integrated socio-technical system developed by Toyota, aimed at efficiently organizing manufacturing and logistics to improve customer satisfaction and minimize waste.

Total Production Streamlining

The comprehensive optimization of all aspects of the manufacturing process to enhance efficiency, reduce waste, and increase productivity.