The Following Information Is Available on Stewart Enterprises, a Partnership

question 138

Multiple Choice

The following information is available on Stewart Enterprises, a partnership, for the most recent fiscal year: There are three partners in Stewart Enterprises: Stewart, Tedder and Armstrong. At the end of the year, the partners' capital accounts were in the ratio of 2:1:2, respectively. Compute the ending capital balances of the three partners.

• A) Stewart = $108,000; Tedder = $54,000; Armstrong = $108,000.
• B) Stewart = $90,000; Tedder = $90,000; Armstrong = $90,000.
• C) Stewart = $204,000; Tedder = $102,000; Armstrong = $204,000.
• D) Stewart = $84,000; Tedder = $102,000; Armstrong = $84,000.
• E) Stewart = $60,000; Tedder = $30,000; Armstrong = $60,000.

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Definitions:

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year or within the operating cycle of a business.

Federal Unemployment Taxes

Taxes paid by employers to fund the federal government's oversight of the state unemployment insurance programs.

Gross Pay

The total earnings of an employee for a payroll period.

Discounted Note

A type of debt instrument that is sold for less than its face value and pays its face value at maturity, reflecting the discount as interest.