Multiple choice

1. The entry to record the issuance of an interest-bearing note credits Notes Payable for the note's 

cash realizable value. 

maturity value. 

market value. 

face value.

2. Which one of the following would not be considered an expense of a partnership in determining income for the period?

 Freight-out 

Salary allowance to partners 

Supplies used 

Expired insurance

3. Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is 

$30,000. 

$15,000. 

$60,000. 

$45,000.

4. Mary Janane's capital statement reveals that her drawings during the year were $50,000. 

She made an additional capital investment of $25,000 and her share of the net loss for 

the year was $10,000. Her ending capital balance was $200,000. What was Mary Janane's beginning capital balance?

 $225,000. 

$260,000. 

$185,000. 

$235,000.