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Table 12-8 Jimmy, Johnny, and Joey are partners in the 3J Company sharing profits and losses equally. Joey has decided to leave the partnership. After all accounts have been updated, the capital balances of the partners are currently $90,000, $120,000, and $70,000, respectively. -Refer to Table 12-8.Assume Joey takes $50,000 in cash and a promissory note for $30,000.The entry to record his withdrawal would NOT include:


A) debit to Joey, Capital for $70,000
B) debit to Jimmy, Capital for $5,000
C) credit to Note Payable for $30,000
D) credit to Joey, Capital for $10,000

E) All of the above
F) None of the above

Correct Answer

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An individual partner's signing of a contract to buy coffee for a doughnut shop that the partnership owns and operates falls under which characteristic of partnerships?


A) unlimited liability
B) limited life
C) mutual agency
D) co-ownership of property

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

Correct Answer

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The entry to record a withdrawal of a partner from the firm when payment is made from partners' personal assets affects only partners' capital accounts.

A) True
B) False

Correct Answer

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