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The entry to record a partner's interest allowance includes a debit to the ____________________ account.

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Partnership net income of $33,000 is to be divided between two partners,Elan Chan and Roy Anderson,according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson,with the remainder divided equally.How much of the net income will be distributed to Chan and Anderson,respectively?


A) $22,000 and $11,000
B) $21,500 and $11,500
C) $16,500 and $16,500
D) $21,000 and $12,000
Partnership net income of $33,000 is to be divided between two partners,Elan Chan and Roy Anderson,according to the following arrangement: There will be salary allowances of $20,000 for Chan and $10,000 for Anderson,with the remainder divided equally.How much of the net income will be distributed to Chan and Anderson,respectively? A)  $22,000 and $11,000 B)  $21,500 and $11,500 C)  $16,500 and $16,500 D)  $21,000 and $12,000

E) A) and D)
F) All of the above

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If a partnership's salary and interest allowances are in excess of the net income,the entry to close Income Summary after the allowances are recorded will include a(n)____________________ to Income Summary.

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Amounts withdrawn by partners to pay personal living expenses are recorded in their ____________________ accounts.

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Winchester,Wesson & Smith are dissolving their partnership.Their agreement allocates profits and losses 40:30:30 respectively.The ending capital balances are Winchester $45,000;Wesson $25,000 and Smith $13,000.After all assets are liquidated and liabilities paid,there is $12,000 in cash to be distributed.Smith's share of the excess cash is


A) $3,600.
B) $3,900.
C) $4,000.
D) $4,800.

E) A) and D)
F) B) and C)

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The dissolution of a partnership and the formation of a new partnership may have no noticeable effect on the continuing operations of the business.

A) True
B) False

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