Salary expense has been incurred but not yet paid to employees will be: a. Added to corresponding expense in the income statement b. Added to partners' capital c. Added to current assets in the balance sheet d. Added to share of profits of partners
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- Salary expense has been incurred but not yet paid to employees will be: a. Added to partners' capital b. Added to share of profits of partners c. Added to current assets in the balance sheet d. Added to corresponding expense in the income statement26. Salary expense has been incurred but not yet paid to employees will be: a. Added to share of profits of partners b. Added to corresponding expense in the income statement c. Added to current assets in the balance sheet d. Added to partners' capitalWhich one of the following will be recorded under debit side of the partners' capital account? a. Partner's salary b. Partners' share of profit c. Interest on capital d. Interest on drawings
- Partners' capital balances reflect the cumulative effect of a. Initial Capital b. Additional capital c. Share in profit d. share in loss e. drawings f. all of the above g. a, b, c, and d onlyThe partner's capital account is credited in the following cases except in posting of the a. share in profit b. additional capital c. original capital d. closing entry of the drawing account at the end of the period27- Salary expense has been incurred but not yet paid to employees will be: a. Added to partners' capital b. Added to corresponding expense in the income statement c. Added to current assets in the balance sheet d. Added to share of profits of partners
- A statement of changes in partners' equity should Include all of the following except a. Beginning capital balances. b. Investments during the period. c. Partner's payments of loans. d. Withdrawals during the period. e. Ending capital balances. f. Share of profit for the period.1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Current (Cr.) c. Profit and Loss Appropriation (Dr.), Cash (Cr.) d. Profit and Loss Appropriation (Dr.), Partner's Capital (Cr.) 2. What entry is necessary to reflect interest earned on capital account balances? a. Partner's Drawings (Dr.), Partner's Current (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Drawings (Cr.) c. Partner's Drawings (Dr.), Interest Payable (Cr.) d. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) 3. A partner's personal gas receipts have been treated as part of the partnership's service vehicle expenses. Which of the following entries is necessary to correct the error? a. Drawings (Dr.), Service vehicle expense (Cr.) b. Service vehicle expense (Dr.), Drawings (Cr.) c. Service vehicle expense (Dr.), Capital…28--Service revenue received in advance before work has been performed is an example for: a. Accrued revenue b. Unearned revenue c. Outstanding expense d. Prepaid expense 26-Salary expense has been incurred but not yet paid to employees will be: a. Added to partners' capital b. Added to corresponding expense in the income statement c. Added to share of profits of partners d. Added to current assets in the balance sheet Clear my choice
- Partners' share of net income is recognized in the accounts through Accrual entries a. O b. Adjusting entries O c. Closing entries O d. Correcting entriesWhich of the following is not a component of the formula used to distribute income? Salary allocation to those partners working B Interest on the average capital investments Interest on notes to partners D After all other allocation, the remainder divided according to the profit and loss sharing ratioThe withdrawal of capital by a partner from the business of partnership will be? a. Credited to partners' capital account b. Debited to profit and loss appropriation account c. Debited to partners' capital account d. Credited to profit and loss account