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  94.Martinez and Lopez are partners in business named Builders' Services. For the year ended December 31, 2016, net income for Builders' Services was $60,000.Net income or loss is allocated on the basis of the balances of the partners' capital accounts at the beginning of the year. On January 1, 2016, the balances were Martinez, $48,000, and Lopez, $24,000. 1. How much of the net income will be allocated to Martinez?2. How much of the net income will be allocated to Lopez?          95.Escobar and Woods are partners who share profits and losses in the ratio of 60 […]

    31.Under the gross profit method, the cost of the ending inventory is determined by applying the gross profit ratio to net sales and then subtracting the gross profit calculated from the cost of goods available for sale.          32.Under the gross profit method, the cost of the ending inventory is determined by applying the gross profit ratio to net sales and then subtracting the cost of goods sold from the cost of goods available for sale.          33.The gross profit method of estimating inventory enables managers to prepare budgets and proforma (forecast or anticipated) […]

    59.Robert Ballard, a sole proprietor, entered into partnership with another individual. Ballard's investment in the partnership included equipment that cost $64,000 when it was purchased. The equipment has a book value of $26,000 and a net agreed-on value of $32,000. In the financial records of the partnership, this equipment and its accumulated depreciation should be recorded at    A. $64,000 and $38,000, respectively.   B. $32,000 and $6,000, respectively.   C. $32,000 and $0, respectively.   D. $26,000 and $0, respectively.         60.When the owner of a sole proprietorship accepts a partner, the assets of the proprietorship    A. must be transferred […]

    11.When common stock is issued, the par value, or stated value, of the shares issued is recorded in the Common Stock account.          12.Organization costs are carried indefinitely as an intangible asset in the records of the corporation.          13.Organization costs are often expensed when incurred.          14.Preferred Stock is shown in the Stockholders' Equity section of the balance sheet.          15.The amount received in excess of the par value of preferred stock issued is recorded in an account called Paid-in Capital in Excess of Par Value—Preferred Stock.        […]

True / False Questions  1.The Bonds Payable account would be credited for $104,000 to record the issuance of $100,000 par value, 10 percent bonds at a market price of 104.          2.Bonds are often issued as a means of raising capital to pay off short-term debt.          3.The IRS requires companies to issue couponbonds in order to track taxable interest payments made to the bond holders.          4.When a corporation pays bond interest, Bond Interest Expense is debited.          5.Amortizing bond premiums over the period from the issue date to the maturity […]